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Clothing makers are raising prices on everything from underwear to jeans. Supermarkets are beginning to pass along rising costs for dairy, meat and other items. But gasoline is most worrisome. The turmoil in Libya and the oil markets have pushed the national average for gasoline to $3.427 per gallon, up 30 cents since Feb. 15. Prices will reach $3.50 to $3.75 by spring, some analysts say. If they hit $4, shoppers will change their habits, said Ken Perkins, president of RetailMetrics. They'll cut back on discretionary purchases and make fewer trips to the mall. Another challenge for retailers in March will be a late Easter. It doesn't fall until April 24, three weeks later than last year. That calendar quirk is expected to shift sales of holiday items such as candy and children's dresses from March to April, depressing business this month. Analysts look at the two months combined to judge spring selling. Meanwhile, many retailers, including Macy's, Kohl's and J.C. Penney, say they're raising prices on clothing as costs rise, especially for cotton, and demand improves. J.C. Penney officials said Friday that the company tested price increases last year to find out what shoppers were willing to pay. The company said it was more successful with price increases on more expensive brands. "Our strategy is to walk prices up thoughtfully at rates we believe will be supported by consumers," said Michael Casey, CEO of Carter's Inc. in an address to analysts Wednesday. The maker of Carter's and OshKosh B'gosh children's clothing said it increased prices at its stores by 5 percent this spring. It's still unclear how the rising clothing prices will affect shoppers' willingness to spend. "We have not had a sufficient read on consumers' reaction to our higher prices," Casey said, "particularly the more significant increases planned for fall."
[Associated
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