Fall, back to school and the return to the office will cost more for consumers who will want to put on new clothes. If the price of clothing has remained stable over the past year, “the tide may turn” in September, warn traders surveyed by The Press.
Posted at 6:00 a.m.
Many retailers who had, until now, absorbed the various cost increases will have to pass on part of the bill to their customers by increasing the price on the labels.
“That is sure and certain,” confirms Jessika Roussy, co-owner of 10 Mode Choc stores across Quebec. We cannot absorb everything. Unfortunately, we have to increase our prices while remaining [concurrentiels]. So it’s very challenging. There are a lot of decisions to be made. »
Unlike gasoline and groceries, the price of women’s and children’s clothing fell slightly year-on-year, posting declines of 0.1% and 2.3% respectively, according to figures revealed by Statistics Canada, for the period March 2021 to March 2022. On the men’s side, consumers saw a 1.2% increase.
However, most retailers claim to have indeed suffered increases due in particular to the increase in the cost of transport and raw materials. But they decided to spare their customers. They also recall that the pants, sweaters and coats currently available in stores were ordered a year ago. Although prices were up at that time, the increase was less than now.
So over the past year, they’ve used all sorts of strategies to soften the upside. “We have reduced the number of promotions, mentions Lili Fortin, president of Tristan. So the original price, we try to keep it as stable as possible. We know that the customer sees increases everywhere: groceries, gasoline. »
“Our competitors are the clothing stores, but it’s also the restaurant, the grocery store, the SAQ,” she adds. The customer has a certain amount to spend per week and he prioritizes it. We are aware of that. We know that the client has many options. »
However, traders will not be able to spare customers for much longer, according to Mme Fort. “Is this going to last forever? No, she said. We are careful, but we still have to operate a business. »
“We feel that the tide will turn for the fall,” believes Louis Dessureault, vice-president of operations for the Marie Claire Group (Claire France, Marie Claire, San Francisco, Grenier, Dans un jardin). He maintains that the various increases “will be reflected in the retail price”.
However, it is difficult for retailers to quantify this increase. Lili Fortin explains that from one supplier to another, the increases vary. Traders therefore try to juggle these different elements.
Concretely, Isabelle Deslauriers, founder of Alice and Simone, a collection of children’s clothing, calculates that her popular reversible skirt which she currently sells for $60 will go to $67.
PHOTO CATHERINE LEFEBVRE, THE PRESS
Portrait of Isabelle Deslauriers founder of Alice and Simone for an article on the increase in the price of clothing
If the increase in costs is too high, I will have to find a strategy to cut production. It may mean changing the raw material, reducing the number of seams.
Isabelle Deslauriers, founder of Alice and Simone
Convinced that her customers will not flinch too much in front of these price changes, Mme Deslauriers is aware, however, that she must play the tightrope walker. “In children’s clothing, there is still a ceiling that should not be exceeded. »
For her part, Jessika Roussy tries to be reassuring about the fall season. “It’s going to be a little more expensive,” she admits. I think it will be much less drastic than for gasoline or for certain fruits and vegetables, but there will be gradual increases, it is inevitable. »
If she admits that the sales will be rarer, Mme Roussy would like to say that Mode Choc “has a strategy of maintaining prices that are still very affordable and very competitive”.
Late delivery
Moreover, in addition to the increase in costs, the delay in the delivery of the collections causes a lot of headaches, underlines Lili Fortin. So much so that to ensure they have clothes in store, retailers are currently ordering their inventory… for spring 2023.
Factories are closing due to COVID-19 cases, they are struggling to source raw materials such as yarn or certain clothing components. So production times are delayed. You have to start the development cycle earlier.
Lili Fortin, president of Tristan
For the current season, the bad weather in April brought happiness to many merchants who had to deal with delays in the delivery of their spring and summer clothing collections. “We didn’t have an extraordinary month of April, so that didn’t hurt us too much,” underlines Louis Dessureault.
“The weather outside is on the side of apparel retailers this season. Summer is late, adds Jessika Roussy. It’s tough on morale, but it’s easier on retail. »