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Argos to raise prices this week

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Argos to raise prices this week

Consumers to pay five per cent more for products in retailer’s new catalogue

The dust has barely settled on the news that Activision and other publishers will be raising their prices this Q4 – but it has emerged that retailer Argos is this week set to follow suit.

The firm is expected to increase its prices by five per cent in its new catalogue, as a result of the weak pound.

According to The Guardian, 54 per cent of the 18,000 products in the new Argos catalogue, due to launch on Wednesday, are made in China, with around eight per cent from other east Asian countries.

The pound remains around 20 per cent below its value compared to the dollar of a year ago.

Chief exec of Argos parent Home Retail Group, Terry Duddy, has warned that prices would have to rise, and that retailers could not absorb the increases in import costs.

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Argos is suffering from the recession. Operating profits were down 19 per cent last year as margins dipped by 1.5 per cent.

Last month the retailer said like-for-like sales were down 2.8 per cent on last year – though that was better than many feared.

Two million shoppers are expected to pick up a copy of the new catalogue when it goes into the chain's 800 stores this week.

Marks & Spencer has said it is also planning price hikes of two to three per cent due to currency movements.

Hopefully...

posted by LeeC Jul 20, 2009 at 11:26 am
1

... consumers will take 100% of their business elsewhere.

If 54% of their products are made in China, then I think it's fairly safe to say they are made in cheap labour factories, turning the goods out for a pittance compared to what the customer pays.

Perhaps if they supported more goods being made in their home country, they wouldn't have to worry about this sort of thing. They're too busy cutting costs for the sake of the profit though.

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Would you?

posted by techgamer Jul 20, 2009 at 12:18 pm
2
techgamer

So, you happy to pay more for your goods then? Businsses need to make profit in order to keep people employed. Making a profit is not a crime and if they didn't then we all see what happens to the likes of Zavvi and Woolworths.

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oh...

posted by Guru Larry Jul 20, 2009 at 1:38 pm
3
Guru Larry

Their sofas are terrible, I bought one for my 21st years ago and it lasted 5 weeks.

MFI stuff lasts longer than that.

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...

posted by tokai Jul 20, 2009 at 3:09 pm
4
tokai

"retailers could not absorb the increases in import costs."

Well, customers could not absorb the increase in goods from retailers.

If the cost is going up then make your products over here with some quality instead of selling cheap crap made in China for a high price!!!

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"Price rises again"

posted by Adrian Jul 20, 2009 at 3:35 pm
5
Adrian

How come when the dollar/pound is stronger do we not see a reduction in prices? I think I would pay a bit more if they decided to use home grown goods/suppliers.

My wages aren't going up at the same rate as the cost of living; I didn't get a pay rise last and not sure about this year either.

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get real

posted by ohiyeah Jul 20, 2009 at 4:23 pm
6
ohiyeah

there was loads written about "rip off britain" when cars were found to be far cheaper everywhere. now they are cheaper in the uk. go to a few shops around europe and see for yourself what a good deal the consumer gets in the uk, on everything, not just luxury items

and, BTW, people do need to spend less (when they haven't got the cash) on stuff that's not important - look at the debt the country got itself in - you think you would feel happier with 0 on your credit card, or maxed-out?

wake up

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Easy now peeps

posted by Martha Farquar Jul 20, 2009 at 6:08 pm
7
Martha Farquar

This is really funny. Was it last week everyone here was shouting about prices from DSG being massively out of sync with the internet/grey schlockers. And now everyone's having a pop at HRG for upping prices.

But if anyone sells a game cheap they're scumbags!

Wierdo's

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RE: Easy Now Peeps

posted by Bob Jul 20, 2009 at 7:13 pm
8
Bob

@7

Quite right it is laughable how Supermarkets are the devil for selling cheap

Yet 'Rip Off Britain' Instantly gets spouted when a retailer trys to make a profit!

I guess you've just gotta look at who is posting.

Retailers are against Supermarkets & for sustainable margins
Consumers just want goods as cheap as possible with no view to the wider implications.
Look at Primark - Implicated by Panorama as using Child Labour to produce some of their clothes, yet during this recession has seen a 20% increase in sales.

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well...

posted by tokai Jul 21, 2009 at 1:42 pm
9
tokai

@8 "Consumers just want goods as cheap as possible with no view to the wider implications."

Well yes of course that's what consumers want. But if prices are going to go up because UK labour and manufacturing is being used instead of China then I might be more supportive. How is that not caring about the wider implications!

@6 "and, BTW, people do need to spend less (when they haven't got the cash) on stuff that's not important"

Well in order to recover the economy and keep it going people need to keep spending and buying - the stuff they buy is of little importance as long as it carry's on. Price increases in whatever sector might have a reverse affect where indeed people buy less! Which would spell absolute disaster for the whole economy.

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Nintendo wii @ Argos

posted by Indie RIP Jul 24, 2009 at 4:05 pm
10
Indie RIP

Just seen the New Catalogue and Wii SPorts Pak which is the basic pack £195 whoopee !!!!!!!!!!!!!!!

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Silly people...

posted by Tim Jul 25, 2009 at 12:07 pm
11
Tim

At 8.

"Look at Primark - Implicated by Panorama as using Child Labour to produce some of their clothes, yet during this recession has seen a 20% increase in sales."

Are you seriously suggesting that all the big brand names (Reebok, Adidas, Puma etc.) don't use child labour?

Just because Primark doesn't lie as much as the others doesn't make it any worse. And besides, it sells quality goods for low prices; why are you complaining?

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It wasnt

posted by noodles02 Jul 27, 2009 at 1:08 pm
12

It wasn't the consumer that did all the damage to enconmany it was the banks that did most of the damage with bad money manmange and bad investment and then the goverment gave then money out of the consumers pocket to bail the banks out and to top it all the fat cat banker "WANKERS" get a rise that's way over the price of living for f''king it up.

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RE: Silly people

posted by Bob Jul 27, 2009 at 7:46 pm
13
Bob

"And besides, it sells quality goods for low prices; why are you complaining?"

If they use child labour, in the manufacture of these 'quality' goods - then I complain.

Don't you?

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