Fast fashion lowers original prices and raise sales prices
In February 2023, fast fashion retailers in Europe made a drastic 6% reduction of their original prices compared to last year, according to monthly numbers from Norna Analytics on four leading fast fashion retailers. Meanwhile, the actual sales prices increased by 3%. Average discounts came in at a low 21%.
– The significant price reductions could be a response to weaker purchasing power amongst consumers, with Uniqlo and Gap lowering their prices by 28%. On the other hand, Zara is introducing its new collection at the same price as last year, and H&M is raising its prices by 8% compared to last year. The differing price strategies among these companies could indicate a search for new roles in the market, according to Michael Collaros, CEO of Norna Analytics.
Zara’s significant price reductions on original prices for the season now appears to be over. After the 11% reduction in January, prices have remained stable. H&M, however, continues to increase its prices.
– In February, H&M’s original prices were 8% higher than the same month last year, which could suggest a more aggressive approach from the company. according to Michael Collaros.
Gap and Uniqlo continue to lower their original prices in Europe
– Gap reduces original prices by 28% compared to the same month last year, while simultaneously reducing its range in Europe by 36%. Zara also reduces its range by 7%, while Uniqlo and H&M increase their range by 4% and 8%, respectively. These companies interpret demand very differently, according to Michael Collaros.
Actual sales prices are more stable, with Zara’s average price up by 4% compared to last year.
– H&M’s sales price is now 6% higher than last year, down from 13% in January. This could indicate a strong belief in the company’s own range. Gap and Uniqlo make very small changes, according to Michael Collaros.
Discounts in February show reductions of 21% compared to the regular price, down from 17% in January. However, this year’s discounts are still lower than last year’s average of 28%.
– Companies are using discounts in a significantly different way, with Zara, H&M, and Uniqlo maintaining similar discount levels from last year. Meanwhile, Gap has moved from offering one of the largest discounts to now offering the smallest, according to Michael Collaros.
For more data: Michael Collaros mobile phone +46 70 845 23 34. Norna Analytics collects and analyzes fashion data from over 600 fast-fashion companies’ websites. This includes prices, sales, assortment, sustainability, materials, colors, and more. Visit www.norna.ai for more information. The information above is based on selected main markets in Europe. Categories such as accessories and shoes are excluded.