Aug 19, 2011 8:24 AM by Kate Richards

Price of clothes increasing

You might notice a price change on your clothes this season.

Retailers are raising prices on merchandise an average of 10
percent across-the-board this fall in an effort to offset their
rising costs for materials and labor.

But merchants are worried that cash-strapped customers who are weighed down by economic woes
will balk at price hikes. So, retailers are trying to raise prices
without tipping off unsuspecting customers.

Retailers have long tried to mask price hikes - for instance,
jacking them up more than needed so that they can offer a "sale"
on the higher price.

But the new strategies come as merchants'
production and labor costs are expected to rise 10 percent to 20
percent in the second half of the year after having remained low
during most of the past two decades.



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