This weeks news has predicted gas prices as high as $4 this summer, while cotton prices, after rising this last year, dropping again. Crop prices, in general, are expected to fall.

Some of the effects on retail pricing will include

• higher prices due to fuel
• higher transportation costs for online retailers (expect delivery companies to increase prices or add fuel surcharge)
• lower prices on cotton
• consumers having more money to spend as will spend less on groceries

With all these variables, retailers will have several decisions to make on pricing and margin. Prices are sure to adjust, but how? To maintain your current market position it is important to keep a close eye on the decisions made by your competitors and track the pricing decisions they make. PriceTrac provides accurate pricing reports at a high level and down to a product level. Retailers will also need a pricing solution, such as PriceTrac, that factors in shipping costs, which are sure to be adjusted with rising gas prices.