Turkey Price Hike May Hit Fast Fashion

Retailers with fast fashion operations are being warned that they could be hit by a price hike in Turkish product, after a round of wage inflation and an appreciation of the Turkish lira.

High street suppliers say prices of Turkish product have risen by up to 25 per cent in the past year to 18 months. One said: "The wages of textile workers in Turkey have gone up by as much as 30 per cent in the past year and, with a rising lira, there are going to be some major price rises. At a squeeze, we will be able to get away with a 20 per cent increase."

The rise in prices of Turkish product is expected to hit retailers with larger concentrations of sourcing in the country, and those that use it for fast fashion product. Asda sources a high proportion of its George at Asda product from Turkey. In 200, Next pledged to invest around GBP 20 million over the next three years to establish sourcing operations in Romania, Turkey and Sri Lanka.