PROTECTING RETAILERS AND A LIFESTYLE

SURF SKATE SNOW SUP WAKE

Retailers Feel the Effects of Rising Cotton Prices

We’ve all seen recent media coverage of the cotton prices climb, and Bloomberg is now reporting that retailers like Gap and Wal-Mart are seeing firsthand the effects of higher clothing costs. According to the article, manufacturers may be paying Chinese production facilities an additional 30% for apparel items made of cotton.  It’s only a matter of time before action sport retailers are seeing the effects of increase raw material costs. The question will be how small, specialty shops already coping with low margins are going to be able to handle the increased wholesale costs that are inevitably heading our way, especially because our industry boasts such a large t-shirt sales category.

http://www.bloomberg.com/news/2010-11-16/gap-wal-mart-clothing-suppliers-raise-prices-on-terrifying-cotton-costs.html