Lower Australian dollar means clothing price rise “inevitable”, suppliers say
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Clothing prices are expected to rise across the board for the first time in five years as suppliers and retailers raise prices after a 17 percent slump in the Australian dollar.
Suppliers have warned retailers that prices for fashion clothing, underwear and basic apparel will rise significantly in the second half of calendar 2015, as currency hedges roll off and new-season stock comes into stores.
The Australian dollar has fallen 17 percent against the US dollar since June and 10 percent over the past 12 months, pushing up the cost of clothing sourced from China, Bangladesh, Sri Lanka, Thailand and Vietnam.
Questions & Answers
Q.Why are clothing prices expected to increase?
Why are clothing prices expected to increase?
Clothing prices are expected to rise because the Australian dollar has significantly slumped against the US dollar. This makes imported clothing more expensive for Australian suppliers and retailers to purchase from overseas manufacturers.
Q.Which specific types of clothing will be affected by the price rises?
Which specific types of clothing will be affected by the price rises?
The price increases will affect fashion clothing, underwear, and basic apparel. Suppliers have warned retailers that these categories will see significant price adjustments during the second half of 2015.
Q.When are consumers likely to see these price increases in stores?
When are consumers likely to see these price increases in stores?
Consumers can expect to see price rises in the second half of calendar year 2015. This is when currency hedges expire and new-season stock, purchased at higher costs, begins arriving in shops.