Retail Merchandiser Volume 63, Issue 3 Volume 63, Issue 3 | Page 10

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Headlines continue to highlight the impact of inflation on consumers . It is true we have seen record levels of price increases on the shelf at retail , with brands making three to five price increases over the past two years . Yet , what ’ s not often publicized is that inflation is disproportionately affecting retailers and brands as well . Consumers aren ’ t feeling the full effects of inflation as much of the increased costs are buffered by margin compression from retailers and brands .

The producer price index ( PPI ) continues to outpace the consumer price index ( CPI ), which means brands are scrambling to find prices that consumers will accept while offsetting the rising costs related to labor , shipping , fuel , energy , and other raw materials . Often brands and retailers cannot pass along the full cost increases they face , resulting in
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