Rising retail apparel costs a challenge

New Ideas in MarketingEssential news for marketers, summarised by YouGov
August 06, 2021, 2:34 AM UTC

Fashion retailer sales grew 7.4% from January to June 2021 to reach $130.9 billion, according to Edited.

The article shares that between June 2020 and June 2021, the consumer price index for apparel jumped 4.9%. Price increases have occurred in segments like children’s clothing, kid’s shoes, men and women’s apparel, and more.  

Macy’s Terry Lundgreen believes the “modest” price jumps might not worry consumers currently. While this could soothe retailers, the continuing supply chain issues coupled with tariffs and employment costs might be worrisome.

Retailers must also note that supply chain issues together with increased prices wouldn’t necessarily translate into better margins. If consumers “tighten up” going forward, price corrections would be needed. Discount and fast-fashion retailers whose offerings are priced much lower (base prices) than others stand to benefit.  

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