According to a recent study by data analysis specialist Retviews, average prices in the US mass market have climbed by 15%.
This increase can be attributed to inflation and the strategic decisions made by fashion retailers.Zara, one of the leading fashion retailers, experienced the highest increase in prices.
The brand made a strategic decision to tap into a more premium sector, which led to an upsurge in their prices.
On the other hand, Aritzia continued to maintain its position as the most expensive mass brand in the US market, with a current average price of $95.While prices are rising, retailers are also facing the challenge of excess inventory.
To counter this issue and drive sales, brands are increasingly relying on discounted items.
Retviews recorded a greater discounting season, with brands reducing the percentage of full-priced items by 11% on average.
This shift is reflected in the higher percentage of discounts in the 50-60% bracket and above.Retviews’ data highlights the prevalence of discounted items in different product categories.
Dresses and skirts, as well as blouses and shirts, emerged as the categories with the highest discount rates, standing at 71% and 72% respectively.
Across all categories, the average discount rate has increased by 16%.It’s worth noting that price increases may vary from market to market.
Gap, for example, has different price ranges in Europe compared to the US.
On average, Gap’s minimum, average, and maximum prices are 9% higher in Europe.
However, the most frequent price is 5% lower in Europe, which can be attributed to a smaller assortment offering.In conclusion, the study by Retviews reveals the upward trend in average prices in the US mass market.
It also highlights the strategies employed by fashion retailers, such as Zara’s move into the premium sector and Aritzia’s position as the most expensive brand.
The data also sheds light on the increasing reliance on discounted items to drive sales and tackle excess inventory.
Additionally, the study shows that price dynamics can vary across different markets..
