The apparel pricing roller coaster that’s wreaked havoc on retailers’ profits of late has started a slow ascent.
Per the U.S. Labor Department’s latest Consumer Price Index (CPI), published Thursday, apparel prices rose 0.3% in October—a small increase but one that’s helped push up the 12-month average by 0.7%. In fact, overall apparel prices fell in only three of the last seven months.
By category, the price of women’s clothing rose 0.2% last month, as increases in dresses, suits and separates offset declines in outerwear, intimates, sleepwear and sportswear. On a year-over-year basis, womenswear prices are up 0.3%.
The same can’t be said for menswear prices, however, which fell 0.2% overall in October, despite increases in all categories except accessories, and are down 0.5% year-over-year.
Childrenswear was mixed last month, with girls’ apparel prices dropping 0.9% (though they’re up 3.1% year-over-year) and boyswear increasing 0.4% (up 3 percent in the last 12 months). Meanwhile, infants’ and toddlers’ apparel prices are still depressed, after a monthly decline of 1.1%. On a year-over-year basis, prices are down 5.8%.
Overall, the CPI—which is what people pay for food, clothing, fuels and other goods and services—increased 0.4% in October and it’s up 1.6% over the last year. That’s the largest 12-month increase since October 2014 and it’s worth noting that inflation has grown steadily since July, increasing 0.2% in August and 0.3% in September.
Print PDFPrint PDFWhen times are tough, companies are more willing to test new ideas and Target, Warby Parker and Amazon are pushing the boundaries of traditional retail. Target gets in bed with Casper After failed attempts at an acquisition, Target has instead invested in Casper...Read more
J.Crew has been shifting in its seat trying to adjust to a new normal of shrinking sales and growing debt, but nothing has quite yet paid off, so the company is cutting its prices.Read more
It’s official. Coach, Inc. is snapping up shares of handbag brand Kate Spade.Read more
This week, consumers called for better children's apparel, retailers turned internally to remedy their financial woes and apparel incubators improved China's manufacturing sector.Read more
Whether and how much consumers care about sustainability may be an ongoing question the industry wants an answer for, but one thing that’s clear is that though some consumers do care, sustainability isn’t the first thing they think of.Read more
Gymboree tapped former Tilly's executive Daniel Griesemer as its new CEO, JC Penney appointed Marci Grebstein as its new EVP and Wolford creative director Grit Seymour is leaving the company.Read more
Aiming to clear up potential conflicts with state laws, the Reinforcing American-Made Products Act now moves to the full Senate for consideration after the chamber’s Commerce Committee gave approval to the measure.Read more