Key Sentence:
- Jojo Maman Bebe raised prices for the first time in about five years due to widespread problems in the supply chain.
- Retailers of baby clothes and merchandise say shipping costs have quadrupled in recent months.
Sales Director Gwyn Milligan said, “We have no choice but to pass some of these costs on to our customers.” The price increase will not be uniform but depends on each item and its composition. Milligan told Radio 4’s Today 4 that the company had seen rising prices for raw materials such as wood, paper, and plastic, affecting items such as toys or changing mats.
He added that due to competition from retail competitors, the company faces increased costs for some products.
How severe is the shortage of truck drivers?
“We look at our competitors’ prices and also what customers are willing to pay. “There is no definite improvement in any area, but it depends on what we have observed and what is happening in that sector.” While dealers don’t believe the price hikes will continue. He points to supply problems – mainly due to the lack of truck drivers at the port and difficulties in procuring shipping containers.
Milligan said, “We advise our customers not to panic as we have increased our orders to meet JoJo’s growing demand.”
According to the retailer, customers have already started planning their Christmas shopping. The term “Christmas” was the third-highest searched on his website last week. He believes costs will be even higher due to lockdown restrictions that hampered holiday plans for many in Britain last December.
It came as the British Retail Consortium (BRC) warned that rising prices could continue into the winter months. According to new data from trade authority and market research firm Nielsen. Retail prices increased in August compared to the previous month.
Some non-food product categories, such as electrical engineering. Reported sharp year-on-year inflation increases due to “global problems with delayed shipments and shortages of microchips. While overall retail prices fell 0.8 percent year-on-year, said Helen Dickinson, Jojo Maman Bebe CEO of BRC. There are some simple signs that product prices are changing due to rising costs.”
He warned: “Low prices are already in jeopardy, and now a shortage of truckers has created additional problems with a shortage of 90,000 drivers.”
The BRC warned Logistics UK of a shortage of truck drivers in August. Saying while Brexit and Covid-19 prompted many to leave the UK, temporary visas for EU drivers could lure them back. On Wednesday, Ms. Dickinson said customers might see reduced options or higher prices for their unique gifts ahead of the primary holiday season.
“Without government action, British consumers will pay the price.”
The government has slightly relaxed the working time rules for drivers, meaning drivers can increase their daily driving time from nine hours to eleven hours twice a week. Companies like Tesco and Aldi have also increased truck driver salaries or offered entry-level bonuses.