Toy Prices In The United States Will Increase By 10% In 2008.

American retailers have begun to argue that they are going to raise the price of holiday products by 15% this year, from daily necessities to toys and luxury gifts, such as European handbags and clothing.

What are the main reasons?

Of course, the same old problem is that energy prices are soaring.

When most consumers are just beginning to consider shopping in the homecoming season, retailers are already preparing for very important holiday season products.

Consumers see many commodity prices rising quietly, but now the cost pressures are also increasing. The weakening of the US dollar and the increase in labor costs in China are forcing traders from low priced warehouse clubs to buy more goods and high-end clothing stores to pass more burden on consumers in the months ahead.

Can Christmas shopping be saved in advance?

Of course!

Many shops are still considering how to price holiday products. The decline in oil prices in recent weeks may be a little easier for you.

Buying a handbag that shows status can help shoppers save some money, but for other commodities, it's too late now.

Any sharp increase in demand may lead to a new round of worse inflation, which will become a catalyst for price spiral.

The price increase is even greater, and domestic businesses are more likely to drive away shoppers' risk. Shoppers may be able to tighten their pocketbooks and reduce holiday gift purchases.

That may mean that the economy has been hit hard, because consumer spending accounts for 2/3 of the nation's economic activity. Holiday spending constitutes a big chunk of business sales and profits.

Marilyn Reese, who works in Cincinnati insurance company, said, "to be honest, if prices go too high, I may not purchase, especially those Christmas decorations.

I will find something that I have to deal with. "

Some stores have a deep discount on holiday season to attract consumers, but prices are still rising.

Because the original price may be higher, even if the discount is 50%, business is not necessarily better than last year.

Even in the retail industry, Costco Wholesale warned last week that the company's profits were squeezed by rising energy costs, and the company had to continue to raise prices.

This year, holiday commodity prices will rise by 12% over last year. The price of roast chicken has been $4.99 for many years, but it increased to 5.49 dollars three months ago, up to 5.99 dollars last week.

The price of toys this year will probably increase by about 10% compared with last year.

European luxury goods are also more expensive, because the US dollar depreciates against the euro.

In recent years, the prices of European handbags, shoes and clothing have been rising quietly, and will rise by 15% this autumn.

According to Sandy Neiman, marketing director of Paul Stuart clothing company, the tailored men's suit is priced at US $1700-5000. Since September, European clothing prices are expected to increase by 10%.

He believes that wealthy customers will not blink, but other customers will buy cheaper clothes, give up knitted shirts, and buy suits because they can wear for years.

Because of the cheap labor force in China, the price of clothing in the mass market has been declining for decades. But now China's wages are rising and the prices of clothing in the mass market are rising, forcing shops to shift production to other low-cost countries, such as Vietnam.

J.C. Penney spokeswoman Quentin Crenshaw visited 17 different countries. He said chain stores would not raise all prices during holidays, including the main commodities from China, such as shoes and porcelain, though the cost would be increased.

Wal-Mart Store Inc, Sears holdings and Target declined to comment on holiday sales, but when they split their sales reports in the two quarter in August, the price increase would be clearer.

Earnings are not optimistic.

Retailers are forced to sacrifice profits and digest costs, but this situation will not last too long, because holiday sales account for about 40% of business profits, accounting for about 50% of sales.

In the quarter, the overall profit of the retail industry will definitely drop by 5.2% compared with the same period last year, and it has shown a downward trend for 5 consecutive quarters.

If it does not include WAL-MART's profits, the decline will be as high as 13%.

Experts say consumers do not expect prices to fall during the holiday season, and prices will increase by 15% next spring.