Cath Kidston is set to become the latest brand to raise prices because of the slump in sterling prompted by the Brexit vote.
The homeware and fashion label, loved for its floral prints, said it would increase prices by an average of 6% in August, when the next season’s lines go on the shelves. It follows similar announcements by companies ranging from Apple to Walkers Crisps, which face a rise in sourcing costs because of the currency slide. The pound is down 18.2% against the dollar and 12.6% against the euro since the EU referendum in June.
Cath Kidston’s currency hedging is due to run out in March. Kenny Wilson, chief executive, said its businesses in the Middle East and Asia would act as a natural hedge as they generate revenues in currencies that have risen against the pound.
Wilson said the retailer was “doing everything possible to ensure that any price increase is kept to the minimum” to protect consumers. “We have tried to absorb as much as we can,” he said. Inflation is forecast to hit 3% this year as supermarkets and fashion retailers raise prices.