Apparel and footwear prices slowed in July, continuing to hinder increases in the overall CPI, and reversing the trend of the prior few months.
Overall inflation increased year-over-year by a less-than-expected 2 percent in the month, despite food and energy prices that remain relatively high. The increase was down slightly from June and was the lowest in three months, according to data just released by the U.S. Department of Commerce.
The index for apparel and footwear increased by only 0.3% compared to the same month last year, well below June’s 0.9% rise.
Apparel prices (excluding footwear) experienced a negligible 0.1% year-over-year increase, after a 1.4% gain in June and a 1.2% increase in May. Footwear prices rose by 0.9%, their biggest increase in 10 months.
Women’s apparel prices edged up by 1.2% in the month, their smallest increase in five months, while menswear prices remained flat compared to the same month last year.
The price index for infants’ and children’s increased for the fifth straight month, rising 1.6% in July, more than June’s 1.1% gain. This was due to a 2.8% increase in boys’ apparel prices.
Apparel prices continue to be pressured by a particularly intense summer clearance sale season, continuous everyday promotions at retail, and an expansion of the off-price and outlet store channels that are gaining share from conventional retail formats.
Even though sustainable fashion is in its beginning stages, some retailers are taking the steps to accelerate the industry’s circular future.Read more
Amazon Go, Amazon's anticipated high-tech retail outpost, is now officially open, allowing shoppers to grab and go—without a stop at the register.Read more
Under the Bangladesh Accord, an unnamed clothing brand has been instructed to address safety issues in more than 150 factories.Read more
Leading footwear manufacturer Yue Yuen plans to sell its stake in retailer Pou Sheng, as part of a plan to take the store chain private.Read more
Luxury firm Richemont, which originally put Net-A-Porter and Yoox together, has plans to acquire YNAP to help it boost its online profile.Read more
Cone Denim's operations in Mexico received OEKO-TEX Standard 100 certification, plus True Fit closed its $55 million Series C investment.Read more
All signs point to wanderlust as a full-fledge character trait of millennial consumers that footwear brands and retailers should embrace.Read more