Also, four-fifths of companies admit that they anticipate supply chain disruptions, rising production costs, and problems with Covid’s curb. A survey by major accounting firm BDO follows many weak forecasts from industry groups, including the UK Retail Consortium. BDO partner Ed Dwan said many companies wanted to save the year’s turmoil with a strong finish and optimistic start by 2022.
But he added: “The harsh reality means that ongoing supply chain problems, rising energy prices, and rising costs are taking even more drastic steps because many are floating around. Can also be exacerbated by the new Covid-19 variant. “
According to the survey, 80% of the people asked were pessimistic about the trading situation for this important month.
Approximately 32% of retail and wholesale companies plan to raise prices, and the same percentage of all companies expect production to decline due to inflation.
Manufacturing is at its worst, with 39% charging more and planning to reduce production at similar rates.
Approximately 45% of those surveyed say that their priority over the next three months is to strengthen their flagging national and international supply chains.
Just over a quarter of companies say inflation and high interest rates are likely to have the biggest negative impact on trade and growth over the next 12 months.
The report arrives a few days after Helen Dickinson, CEO of the Retail Consortium, warned that Christmas store prices could be high. She said after revealing last month that the BRC-Nielsen IQ Shop Price Index, an industry group’s monthly inflation index, rose 0.3% year-on-year.
Inflation for fresh food in November was 1.2%, the highest since August 2019, with overall food inflation of 1.1%.
Dickinson said: “Food prices are rising, and some of this year’s Christmas shopping can be a bit higher, especially for fresh food.”
“We expect inflation to accelerate in the coming months,” she accused of “labor shortages and rising costs of transportation and commodities.” She added: “Retailers are doing everything they can to mitigate the impact on their customers.
“The government also needs to play that role and work with industry to find long-term solutions to labor shortages, as it helps ease cost pressures and protect the pockets of British citizens. . “
The Confederation of British Industry said last week that the number of companies considering passing on production costs has risen to its highest level in 30 years. “Cost pressures are still a very real concern,” added senior economist Ben Jones.
In other cool economic news yesterday, Tesco warehouse workers and drivers announced a strike for Christmas in protest of a 4% wage offer.
United Kingdom’s largest union, Unite, said more than 1,000 members in store warehouses in Doncaster, South Yorkshire, Didcot, Oxfordshire, Belfast and Antrim in Northern Ireland will take action.
General Secretary Sharon Graham said: “Unite always prioritizes the work, wages and conditions of its members and fully supports Tesco members until this dispute is resolved.”
Adrian Jones, National Officer of the Union, said: “Unite is on strike as a last resort to run out of all other options.
“Even at this later stage, Tesco was able to avoid serious store disruption by returning to the negotiating table and making significantly improved proposals.”
However, a spokeswoman for the store insisted:
25 years. “
Meanwhile, the Federation of Small Businesses has warned that members anticipate delays caused by next month’s new paperwork requirements for goods imported from the EU.
At this time, the full customs declaration of Euro products can be postponed, but from January 1st, the documents must be completed on arrival.
FSB Chairman Mike Cherry has shown that only a quarter of small importers who are affected and aware of the changes are ready to deal with them, according to a study.
He states: “Given the turmoil of the last 18 months, new concerns about Covid, and this is the busiest time of the year, it’s understandable that few companies are well prepared. I encourage you to raise awareness. “
Shortages and Covid are due to festival price increases | UK | News
SourceShortages and Covid are due to festival price increases | UK | News