How to Buy Ahead Of The Cotton Price Increase

With the holiday season right around the corner, the clothing industry always get a bit of a sales surge this time of year. The bad news for consumers is that cotton prices have been slowly creeping higher. While the rising cotton costs have not impacted the price consumers pay for clothing and other cotton made products, it soon will. Clothing retailers have said to expect a hike as early has January.

According to a recent SmartMoney article, Bad weather in the cotton producing regions of India and China, and flooding in Pakistan, resulted in poor harvests this season, which have driven cotton prices up nearly 80% since the summer. So far the prices have yet to be passed along to the consumer, but many retailers have already said they plan on a price increase to offset rising cotton costs. Some of these retailers include but are not limited to Bon-Ton (NASDAQ: BONT), Jones New York, Hanes, premium denim producer 7 For All Mankind, and outdoor clothing maker North Face; all of which have said they expect to raise prices by 10%.

If you're looking to avoid paying an additional premium on your clothing in the upcoming season, look for pieces in your wardrobe that you are likely to replace or add to in the coming months. If they are made mostly of cotton, make the replacement before 2011. If you have a favorite piece, it could even be worth it to stock up on it.

Items that may be affected include jeans, dress shirts, socks and underwear. Many jean-makers still use as much as 100% cotton to make the product, such as 7 For All Mankind. Dress shirt makers like Brooks Brothers and Thomas Pink use cotton as its main input as well.

Everyone needs socks and underwear. Look for multipacks to be on sale says Rachel Weingarten, a personal stylist in New York City. Through Nov. 3, Kohl's (NYSE: KSS) currently offers Adidas ClimaLite sports socks for 25% off. Stock up on cotton undershirts and other dainties while prices are low. Victoria's Secret offers up to 75% off in its clearance section, with cotton underwear priced at $3.99 instead of the regular $7.50.

Shares of KSS are trading lower at $49.85

Shares of BONT are trading higher at $13.23