Public sector workers to cut down on toys and clothes?

UK Budget 2010:

“Two year public sector pay freeze on staff earning more than £21,000”

Cassidy Brothers plc Chairman’s Statement:

“ Trading in 2011 is going to be difficult and will see prices rise significantly. Firstly because of the rise in V.A.T. but more importantly the impact of price rises in China and transportation and shipping costs from there to the U.K. These will affect all important price bands of £5.99 – £10.99 etc. that the consumer and trade has been accustomed to for the last ten years, most of which can no longer be maintained. The transition will take two or three years to filter through but it will happen, and any company who shuts their eyes to it will not survive. Companies have to expect negative responses from their customers and accept a decline in sales as a result. Casdon has experienced this many, many times over the past 65 years and will be prepared.”

Next plc trading statement:

“The combination of higher cotton prices, capacity tightening and a lower dollar costing rate mean that we will experience input cost price inflation in the first half of 2011. We aim to mitigate some of the effects of this with the development of new sources of supply and more rigorous negotiation. However, the combination of increasing cost prices and the January 2011 VAT rise mean that clothing retail prices are likely to rise in Spring 2011. We have yet to purchase the majority of our spring summer ranges, but we estimate that selling prices may rise between 5% and 8%.”

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