Rising inflation The cost worries some people, especially because it has already affected Consumer confidenceNevertheless, although price increases in almost all industries may cause some concern, people in the apparel industry are not worried about how it will affect them.
in spite of Price increased In all areas of the economy, the Department of Labor’s Consumer Price Index in June showed that prices have risen by 0.9% overall from May, and the apparel industry welcomes price increases after ten years of stagnation in the industry.
“This is not a big problem for apparel retailers,” said Terry Lundgren, former executive chairman and CEO of Macy’s. Power lunch“You are talking about a price increase of a few dollars. It will not change consumers’ thinking about purchasing.”
For 10 years, clothing inflation has not been a factor, and, according to NBC Finance Channel, Prices rose by 0.7% in June, after rising by 1.2% in the previous month. Compared to a year ago, at the peak of the coronavirus pandemic, prices rose by 4.9%, which Lundgren called “moderate.” In contrast, car prices rose by 10.5%, food prices rose by 0.8%, and energy prices rose by 1.5%.
Overall, this increase means that a clothing project that cost US$20 last year will now cost US$0.98 more per year. Lundgren said that in addition to a small increase, Retail Relying on suppressed demand to maintain the clothing market, and at this usual point in time and clothing demand may bring continued good news.
“Clothing is an event-driven activity,” he said. “If we look forward to these events in the fall, including back to school, concerts, etc., this is really good news for the apparel industry.”
It was revealed in the US Department of Commerce that his comments appeared to be supported by evidence of consumer spending habits Retail sales unexpectedly rise June was an increase of 0.6% over May and an increase of 18% over the same period last year. In terms of clothing, these figures in June were 2.6% higher than in May and 47% higher than the same period last year.
However, consumer confidence also declined due to inflation, with the consumer confidence index reaching 80.8, the lowest level since February.
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