The Entertainer’s founder and chief executive said the retailer is “looking at 10% plus retail price increases” following the Brexit vote.
Gary insisted however that consumers wouldn’t feel the impact of price inflation until 2017.
“We have bought enough dollars for this year, so it’s not going to affect this Christmas, but there will be an impact on prices as we go into the New Year,” he said, adding that The Entertainer will keep inflation to an “absolute minimum” to ensure its customers are “impacted less”.
Gary insisted that prices would go up across the sector because “if any retailers’ cost prices go up, retail prices in shops will follow”.
“Consumers will see the price of petrol go up,” he added. “Even items bought from UK suppliers in pounds will go up because they will have been bought in dollars.”
He also noted that price inflation could be the “saviour” of rising retail costs, such as the national living wage, if it leads to an increase in turnover. However, he said that was based on the assumption that “the customer has more money in their purse”, but warned that “we’re not going to see salaries increase 10% next year”.
“We have built a business model knowing what we know, and now we’ve changed it all,” he said. “How can you plan over the next one to five years to build and grow a business in Europe when we don’t know what it looks like? Everything is on pause.”
Gary said he thought the outcome of the EU referendum had come as a “surprise to everybody”, adding that the full impact of the vote remains unknown, because “everything else is yet to be negotiated”.