Textile retailers have to double-label every item - Simsic

14 Feb '06

3 min read

Retailers are well prepared for the tolar/euro double pricing, according to the Trade Association at the Chamber of Commerce and Industry of Slovenia (CCIS). No serious problems are expected, even though the retailers will have to shoulder the bulk of the costs.

As Marjanca Simsic of the association has told they hope only that the final exchange rate does not differ significantly from the current central exchange rate, so that there would be no additional expenses.

According to the Institute for Macroeconomic Analysis and Development (IMAD), the costs of the euro changeover will amount to SIT 5.9bn (EUR 24.6m), yet, this does not include any additional costs.

The central exchange rate was set at SIT 239.64 to the euro when Slovenia entered the ERM II exchange rate mechanism in June 2004. If the final and the central exchange rates differ, the cost would increase by SIT 1.3bn (EUR 5.42m).

"We hope this parity rate will be final, which the representatives of Bank of Slovenia have said is highly possible. However, it is all up to the EU Council," Simsic said.

In case the final exchange rate changes, the retailers will have two weeks to adjust the prices. "These 14 days could be somewhat chaotic, as it is impossible to change all prices overnight," Simsic added.

Although the retailers wanted the double pricing period to be as short as possible, it will now start a day after the final exchange rate is set, and would end at the end ofJune 2007.