Commodity prices are at historically sustained high levels & their effect is being felt on the whole global economy, but particularly sharply by a number of specific retailers. With Oil prices above $120 all costs are increasing, but it is the price of cotton that is currently the undoing of clothing firms with American Apparel the large US based chain issuing a new bankruptcy warning. Due largely to crop and soil fertility failure cotton prices are sustained at 200cent per pound, more than double their historic level. Consumers currently are simply not willing to accept these price rises being passed on leaving such retailers the very unhappy ‘piggies in the middle’. Maybe falling commodity prices will be just round the corner to ‘save their bacon’ – sorry ;)
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