Do the fashion-forward want budget buys, or fine fashion?
Primark’s epic rise as king of fast fashion on the UK high street has charted the British shopper’s love affair with disposable clothing. However, with budget retailers such as Primark, New Look and H&M all reporting a dip in profits it would seem that our liaison with fast-moving low-priced fashion is on the wane.
A report by Stylecompare.co.uk published last week revealed that year-on-year sales at these types of ‘low end’ retailers have fallen by 21 per cent. In a further knock, returns at these stores have also risen by almost one third – a sure indicator that the consumer is now demanding more for their money.
It makes sense that during these difficult economic times shoppers should be trying to make their money go as far as possible and with clothing prices across the board rising due to a surge in the cost of raw materials, there would appear to be a shift from shopping cheap toward shopping for longevity.
Big name brands such as Primark and Next have already warned that they will be forced to increase their prices significantly this year with High Street prices expected to rise by around eight per cent in the coming months and as much as 20 per cent over the coming year.
Some of the retail brands which are performing well are those which are positioned more at mid-market level such as Zara owner Inditex. Zara’s offering indulges fans of fast fashion while having a staggered range of higher priced items which appeal to a wider market. With shops across Europe and beyond they also benefit from considerable geographic diversity.
It’s hard to tell if this shift in fashion consumption is a temporary tangent of a seismic shift – but performances over the next quarter will give more of a defined indication.
