72% of Retailers Are Planning Price Hikes Due to Inflation

Inflation is impacting the entire global economy, but none are feeling the pressure more than retailers. GetResponse recently released Impact of Inflation report, and it gives a clear overview about sentiments among researchers during the current period of inflation. Perhaps the most eyebrow raising statistic in this report is that 72% of retailers are planning to increase their prices due to rising costs spurred by inflation with all things having been considered and taken into account.

With all of that having been said and now out of the way, it is important to note that 89% of retailers have been facing ever rising supply chain costs themselves. Hence, they might not have any choice but to increase prices because of the fact that this is the sort of thing that could potentially end up helping them continue to turn a profit. 45% of retailers cited higher freight prices, 33% highlighted a scarcity of raw materials, 22% are concerned by unpredictable sentiments among buyers, and 19% are having trouble predicting how much demand they might see.

23% of retailers said that they are not facing issues with their supply chain, but in spite of the fact that this is the case the vast majority of them are still feeling the burn. Much of this damage is being seen in the shape of decreased sales, with 46% of retailers reporting that sales have dropped in the first half of 2022. 32% have seen the same number of sales, and interestingly 22% reported that their sales have gone up.

60% of retailers plan to cut costs by switching to an entirely ecommerce oriented system by selling online. 28% said that they will keep the ratio the same, and only 9% will continue to sell purely through brick and mortar stores.

One thing to note here is that 51% of retailers are also planning to offer discounts, and this might help to ease the burden on consumers by leveling out the prices at the end of the day. We are headed for a long, dark winter, and many retailers might not make it on the other side. Take a look at below charts for more insights: