Bigger profits could be in the bag next year for the nation’s retailers.
It’s beacause of the cost of cotton which is used to make all our comfy cozy stuff like jeans, sweaters, t-shirts, and even bed sheets. In the past 12 months, the price of cotton is down about 30% due to weak demand from China, the biggest buyer of cotton in the world.
Cotton is a commodity so its price is determined by many factors like the weather, and supply and demand. Just a year ago, it was the opposite situation with soaring cotton due to flooding in cotton producing countries like Australia, India and Pakistan.
Retailers may be relieved about the cost of cotton but it doesn’t mean profits are all sewn up. In the end, it really depends on the consumer. If people aren’t buying, retailers could be left holding the bag.
Peace Love Profits,
Check out current stock price of some retailers: