Brexit Brings a Third Price Increase for Flooring CustomersBy
Headlam Group says it will raise prices by 3% from September
Move follows similar increases in August last year and January
A third price increase in little more than a year awaits customers of U.K. floorcoverings supplier Headlam Group Plc as the inflationary impact of Brexit continues to widen.
The Birmingham-based seller of everything from carpets to laminated flooring will raise the cost of products it imports from continental Europe by 3 percent in September. That follows similar increases in August last year and January, according to Catherine Miles, director of communications.
Sterling’s 16 percent drop against the euro since the Brexit vote has led many companies to pass on increased costs to consumers in the form of higher prices. European imports account for about 70 percent of Headlam’s cost base, giving it little option but to charge more.
“We only pass on price increases when our own costs go up,” Miles said. Asked whether prices will have to rise even further, she said it will depend on future currency movements.
Aside from the foreign-exchange impact, Brexit hasn’t had any other noticeable effect on the company’s trading activity, Miles said.
“The split between residential and commercial customers has remained steady,” she said.
Headlam on Monday reported increased like-for-like sales and gross margins for the first half of the financial year, leading to an 11 percent gain in pretax profit. The shares rose 1.9 percent to 581.5 pence in London.