White Friday sales under pressure from US Dollar

Retailers are set to launch their “White Friday” seasonal offers on November 27, amid anticipation regarding how the recent rise in the US dollar’s exchange rate might impact the prices of clothing and home appliances and, consequently, the scale of the discounts companies and merchants will offer.

Questions have arisen as to whether current price levels will hold throughout the season, or companies might adjust them in response to rising production costs.

The clothing and home appliance divisions said that there will be no immediate impact on current market prices.

At the same time, the Consumer Protection Agency has announced regulations for the season, warning against “illusory” offers and misleading discounts.

Clothing prices unaffected

A member of the Garments Division at the Chamber of Commerce, Samah Haikal, stated that the prices of clothing currently on the market have not been directly affected by the recent rise in the dollar exchange rate.

She explained that the products currently being sold—or the materials used to manufacture them—were produced or imported about six months ago, which prevents exchange rate fluctuations from having an immediate impact on the retail prices paid by consumers.

Dollar rise has no impact on White Friday

Haikal added that the rise of the dollar would not negatively affect “White Friday” offers.

She anticipates that the discounts provided by retail stores will help boost sales activity and encourage more consumer spending, as merchants strive to attract shoppers during the discount season.

Current clothing prices in the market are linked to production and import costs incurred over the preceding period, rather than necessarily reflecting daily fluctuations in the dollar exchange rate.

Haikal explained that not all the products currently offered by merchants have gone through a new production or import cycle coinciding with the recent rise in the currency’s value—which explains why there has been no direct impact on prevailing prices thus far.