Retailers face a new round of inflationary pressures.docVIP

 PAGE \* MERGEFORMAT 3 Retailers face a new round of inflationary pressures October CPI up 4.4% to a record high, inflation has actually come, inflation has become a trend. And in 2007, 2008, is different, these two years although the CPI rose more than 3%, but belongs to a modest inflation, not only did not adversely affect the retail sector, but many retailers to promote business growth. And in 2009 the global financial crisis, China has experienced deflation for a while, before inflation is overshadowed by the crisis and the formation of lag effect. CASS Institute of Finance, pointed out that the researcher Yi Xianrong, CPI rose to October will not be reversed. In this case, even if the macro-management for prices to adjust to a variety of policy tools, it is difficult in the short term Inflation has been curbed. This means that inflation will be maintained for a considerable period of time. The current round of inflation may not be brought to the retail industry are positive. The short term, inflation may be able to promote retail sales. However, once the CPI continued to rise, the people overall increase in cost of living, it will cause great negative effect on consumers, consumer confidence will rapidly decline, expenditures must be shrinking, which will directly affect the retailers, especially supermarkets, department stores, sales of home appliances and other retailers. Therefore, how to maintain the livelihood of the price stability is the retailers have to consider the issue, it relates to future sales. With the rising prices, retailers in the human, rent, utilities, operating costs and other aspects will be difficult to avoid, once the longer duration of inflation, and consumer spending, costs and reverse the increased financial pressure on enterprises will increase large, that time, the weaker retailers simply can not fight with powerful competitors. Therefore, retailers need to do to prepare to digest these negative factors, so as not to