N Brown warns of price rises as sales are hit by careful OAPs

Online and catalogue shopping group N Brown today became the latest retailer to warn of price rises, admitting expensive cotton and rising Chinese labour costs meant its new ranges of clothes, shoes and bras would cost 5% more.

The firm — which owns catalogues High & Mighty, Marisota and Jacamo and online bra giant Figleaves — said that its core over-65 market was being particularly cautious even without the price rise.

Sales to pensioners fell 11% in the six months to September, which chief executive Alan White blamed on "rhetoric ahead of the Government's spending review".

"Those customers are cautious, they are reining in discretionary spend. The fall in income from investments has also had an impact," he said.

However, better sales from younger customers who, White said, were flocking to N Brown's growing websites, helped overall like-for-like sales edge up 0.6% during the six months. That excludes sales at Figleaves, which N Brown bought for £10.6 million in June.

The group has also been increasing its online offering and said sales rose 17% in the half-year to account for 43% of total revenues.

Pre-tax profit rose 5.5% to £44.1 million.

N BRown said it would keep prices on hold for existing ranges but it is likely to raise price tags on new designs, beginning with its spring/summer 2011 collection.

High street chains including Next have also warned over moves to pass on higher input costs.