Suppliers will not absorb prices rises says GIMA

Garden Industry Manufacturers' Association chief executive Vicky Nuttall says suppliers will be forced to pass on Brexit exchange rated-linked price rises to retailers.

Vicky Nuttall
Vicky Nuttall

Sterling-dollar exchange rate pressures have seen the pound weaken since the 23 June EU referendum, with some suppliers suggesting a 10 per cent increase in imported product prices must be passed on.

Nuttall said: "People seem to have had a mixed season. The weather has been up and down and sales have been up and down to reflect that. Overall, it’s been not a bad year.

"But there is a level of uncertainty in the next few months and years following Brexit and how that will pan out with prices. That’s a whole separate discussion that will come up around Glee time. Everyone is playing their cards close to their chests but there is an impact on prices because of the exchange rates and the number of products being imported. People will have to pass that on. There’s only so much a supplier can absorb. Retailers are demanding in terms of margin expectations and there’s only so much suppliers can do to keep themselves profitable in the end. If they have to absorb price increases it is going to affect profitability."

This week, GIMA held a meet the buyer meeting with retailer Wilkinsons at a hotel near Worksop, hosting 39 companies. Further GIMA meet the buyer meetings are scheduled for Glee in September.

Before commenting please read our rules for commenting on articles.

If you see a comment you find offensive, you can flag it as inappropriate. In the top right-hand corner of an individual comment, you will see 'flag as inappropriate'. Clicking this prompts us to review the comment. For further information see our rules for commenting on articles.

comments powered by Disqus

Read These Next

Pots and containers

Pots and containers

Superior propagation products can justify extra expenditure by providing precise cell fill, optimum root development and healthy plugs, writes Sally Drury.

Business Planning - Inflationary pressures

Business Planning - Inflationary pressures

How can horticulture businesses respond to Brexit-fuelled inflation? Neville Stein outlines the options.

Garden centre profile: Mappleborough Green Garden Centre

Garden centre profile: Mappleborough Green Garden Centre

Phase two of the redevelopment of the former Badger Nurseries has delivered rapid and impressive results, Matthew Appleby discovers.

Follow us on:
  • Facebook
  • LinkedIn
  • Twitter
  • Google +
Horticulture Jobs

Garden retail Top 100 GARDEN CENTRES

Our exclusive ranking of garden centre performance by annual turnover. NEW: 2016 listing just published

Garden Centre Prices

GARDEN CENTRE PRICES w/e 21 September 2016
GARDEN CENTRE PRICES w/e 24 August 2016

Pest & Disease Tracker bulletin 

The latest pest and disease alerts, how to treat them, plus EAMU updates, sent direct to your inbox.

Sign up here