An article at KGW.com (click to read article) reported how the deep freeze hitting parts of the SouthWestern United States and Mexico has severely damaged crops.  The prices related to the produce grown in these areas is expected to rise dramatically as demand will outpace supply.

Food is not the only commodity affected by changing weather.  Cotton harvests were reduced in August of 2010 in countries like Pakistan, China and Australia due to bad weather.  Cotton prices continue to climb and have jumped to a 150-year-high, rising to $1.90 per pound this past Friday, more than double what it was a year ago. As a result, clothing prices are expected to rise at least 10% this spring. Click to read article here at CNBC.com

Further complicating the problems of poor harvests due to bad weather is the fact that oil prices are high and will probably continue to climb.  The effect will be higher transport costs for produce and clothing items, not to mention pretty much any retail product from electronics to pharmaceutical products. These higher transport costs will in turn affect store level pricing.

In order to remain competitive, retailers will have to rely on new pricing strategies which will need to be comprehensive, easy to execute, yet continue to allow the retailer to remain profitable.  Technology, such as JRTech Solutions’ Electronic Shelf Labels by Pricer, will help reduce costs associated with pricing while also streamlining operations.  Please call us for more details on how JRTech Solutions’ Retail solutions such as our Electronic Shelf Labels by Pricer  can help you can gain or retain a  competitive advantage.