Dreaming of a Blue Christmas?

As gas prices hit new levels, will retailers discreetly pass along the costs to consumers?

NEW YORK (CNN/Money) – Consumers are pinched. Retailers are squeezed. Who’ll get bruised first by higher fuel prices as the countdown to the holiday shopping season gets underway?

Some analysts say retailers will avoid passing along the higher costs of running their business to consumers. Others aren’t so sure.
“Between warehousing, utilities and transportation costs, retailers have been paying unprecedented premiums for their supply chain,” said Burt Flickinger, consultant with the Strategic Resources Group. “Therefore shoppers will be seeing substantially higher prices by year’s end.”

…Many trucking companies tack on fuel-related surcharges to retailers as a buffer against rising fuel costs, especially hurting retailers with far-flung distribution networks.

“Most retailers made major mistakes of putting their distribution centers at greater distances from each other when energy prices came down and stayed stable in the 80s and 90s ,” Flickinger said. “Retailers are long-hauling freight anywhere from 300 to 700 miles. With 50 cents a mile for a 20-ton diesel freight truck, it adds up.”

CNN/Money