×
232
Fashion Jobs
H&M
Area Operations Manager
Permanent · AUCKLAND
LOVISA
Regional Manager
Permanent ·
FOOT LOCKER
Manager in Training
Permanent · Auckland
ESTEE LAUDER
bb/cl/el/jm/lm/Mac/tf - Freelance Consultant - Auckland - on-Call/Freelance
Permanent · Auckland
H&M
Department Manager - Wellington
Permanent · WELLINGTON
H&M
40hr Full Time Sales Advisor - Sylvia Park
Permanent · AUCKLAND
JD SPORTS
Floor Manager - Hamilton
Permanent · Hamilton
JAY JAYS
Sales Assistant - Full Time - Jay Jays nz - Albany
Permanent · Auckland
PUMA
Assistant Store Manager - Tawa
Permanent · WELLINGTON
JACQUI E
Assistant Store Manager - Jacqui e nz - Hamilton
Permanent · Waikato
SMIGGLE
Sales Assistant - Part Time - Smiggle nz - New Plymouth
Permanent · Taranaki
JACQUI E
Sales Assistant - Casual - Jacqui e nz - Hamilton
Permanent · Waikato
VF CORPORATION
Icebreaker : Assistant Store Manager, Commercial Bay Touchlab (10 Month Fixed-Term)
Fixed-term · Auckland
VF CORPORATION
Icebreaker : Sales Associate, Keyholder - Commercial Bay Touchlab
Permanent · Auckland
JUST JEANS
Sales Assistant - Part Time - Just Jeans nz - Manukau
Permanent · Auckland
JUST JEANS
Sales Assistant - Part Time - Just Jeans nz - The Base
Permanent · Waikato
JUST JEANS
Store Manager - Just Jeans nz - Dunedin
Permanent · Otago
JUST JEANS
Assistant Store Manager - Just Jeans nz - Invercargill
Permanent · Invercargill
SMIGGLE
Sales Assistant - Part Time - Smiggle nz - Lower Hutt
Permanent · Wellington
JAY JAYS
Sales Assistant - Part Time - Jay Jays nz - Hamilton
Permanent · Waikato
DOTTI
2 x Sales Assistant - Part Time - Dotti nz - Mount Maunganui
Permanent · Bay of Plenty
JAY JAYS
Sales Assistant - Casual - Jay Jays nz- Whangaparaoa
Permanent · Auckland
By
Reuters API
Published
Sep 27, 2022
Reading time
2 minutes
Share
Download
Download the article
Print
Click here to print
Text size
aA+ aA-

Pound plunge means even higher prices for UK consumers, says McKinsey

By
Reuters API
Published
Sep 27, 2022

British consumers are likely to face a further hike in prices of clothing and homewares following the pound's plunge against the dollar, consultants McKinsey said on Tuesday.




The majority of UK retail's clothing and homewares are bought from Asia in dollars. The pound touched an all-time low of $1.0327 on Monday, sharply raising the costs of imports.

“With cost of goods being such a high proportion of the cost base of a company then the extent to which if you have that denominated in the dollar then it’s a pretty material effect,” Anita Balchandani, leader of McKinsey's consumer industries and apparel, fashion, and luxury work in EMEA, told reporters when asked about the impact on consumer prices.

She said the hit to retailers, and ultimately consumers, will depend on how they have hedged their currency exposure.

McKinsey economist Tera Allas said many retailers will not be buying dollars at spot prices.

"They will have some contract terms that allow them to smooth out those costs as well as potentially have hedged their currencies," she said.

UK retailers the John Lewis Partnership and Marks & Spencer (M&S) both adopt hedging to protect themselves from currency shifts.

“The sharp drop in the pound is stark, however we have a comprehensive hedging programme in place to deal with such foreign exchange exposures and this has mitigated any immediate impact on the partnership," said a John Lewis spokesperson said.

M&S said about 75% of its clothing is purchased in dollars. It typically hedges for about 15 months, so is covered for its 2022-23 financial year and a good proportion of 2023-24.

Primark owner AB Foods warned earlier this month that the appreciation of the dollar will dent profits in its 2022-23 year. It has, however, pledged to limit further price increases next year.

 

© Thomson Reuters 2023 All rights reserved.