Over the last two years, Primark has had a rather tumultuous time. With no online store and its doors forced to close during the coronavirus pandemic, shoppers in search of the best possible price for their clothing had to seek a deal elsewhere. Now, Primark have announced that their prices on their autumn and winter collection, due to their forever small margins now facing cost increases. This is down to a number of things, one including the energy and supply chains affected by the war in Ukraine.
Despite this, Primark have still pledged to ensure their prices are affordable, especially in a time where so many of us are feeling the pinch. Sadly, Primark isn’t the only brand affected, as we will see more of our favourite shops also increase their global prices.
The Intidex group dominates the high street as the owners of Zara, Bershka, Pull & Bear and Massimo Dutti expect their prices to rise by 2% in their home market of Spain, but potentially even more in other markets. Whilst this will only be a small amount and not across all of their ranges, those who constantly go to Zara in particular for the best prices on this season’s styles will be affected.
M&S Chairman Archie Norman also announced an increase of prices in late March across both clothing and food, with energy bills and the war being the main source of this. However, they’ve since upgraded their ‘Remarksable’ food range, ensuring value prices on many of their basics.
ASOS suffered considerable losses when reporting the results from this financial year. Housing 1000s of brands and working as a wholesaler without a bricks and mortar destination they may be less susceptible to increasing their prices, but instead have worry of their customers going elsewhere, especially with such an appetite for the high street. They instead seem to be cutting costs elsewhere, recently announcing that customers who pay for Premier delivery (their free next day delivery service) will now only receive the next day perk on orders over £20, meaning that those in search of an instant bargain will have to debate a higher basket cost.
To put it bluntly – the whole high street is set to be affected by the cost of inflation and increased cost of living. But, in a time that is frankly quite bleak for avid shoppers, how can retailers ensure that there’s still motivation and an appetite to purchase something new? Shops have been dominated by promotion-led sales and offerings over the past two years, with many savvy shoppers not buying anything unless it’s on offer. This is undoubtedly set to continue, even if only for a psychological benefit in order to make people feel as if they’re getting a saving. As for any new tactics? Well, that’s our favourite retailers’ next move.