Retailers shield customers from rising costs

  • By Rosie Beasley
  • 26 September 2008

Retailers have been trying to ensure consumers do not feel the impact of price increases, one business expert has claimed.

According to the British Retail Consortium (BRC), rising production costs and "rising world costs" are the reasons behind the price of food increasing.

However, Richard Dodd, spokesperson for the BRC, said these costs have gone up more than the price of goods which shows retailers have been attempting to contain these rises as much as possible.

"Customers would have noticed prices going up much more sharply if it hadn't been for retailers' efforts," he stated.

Mr Dodd concluded that it is competition in the market place which has led to businesses not passing these increases onto consumers.

Research from the Department for Environment, Food and Rural Affairs showed that the poorest ten per cent of the population spends twice as much on food as a proportion of their income compared to the richest ten per cent

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