New data from retail market intelligence platform Edited reveals denim, sneakers, luxury handbags, cult footwear and sportswear are the five categories that have seen the impact of inflation hitting a 30-year high in October which resulted in consumer prices surging 6.2%.
The data is based on analysis of 4bn SKUs.
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Denim
Rising cotton prices have affected denim categories the most, making up over 90% of the raw materials used in production. Kontoor Brands, which owns Wrangler and Lee jeans, has already seen stock prices fall 6%.
Sneakers
In the US, The Bureau of Labor Statistics has reported shoe prices have increased 6.5% in September versus last year, the fastest rate in over two decades. All months except August showed YoY increase, with September climbing 26%, peaking at US$77 versus $66 in 2019.
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By GlobalDataLuxury handbags
Compared to 2019, the average full price of in-stock handbags increased by double digits at Gucci (+14%) and Prada (+11%), with Louis Vuitton noting the biggest jump at +45%.
Cult footwear
Since 2019, several hyped labels have subtly found ways to increase pricing while keeping demand intact. For example, Birkenstock raised prices for its Arizona sandal from $39.95 to $44.95 this year, Dr. Martens boosted prices on its 1460 boot from $230 to $250 and Crocs raised its average selling price up by 8%.
Sportswear
Activewear and loungewear stockists are recognising the opportunity that lies within the category as consumers adopt healthier lifestyles post-lockdown. Nike updated the majority of its new-in shorts options from $30-40 to the $40-50 bucket and Lululemon introduced higher ticket styles within its best-selling Align programme, boosting its highest-priced leggings from $118 in 2020 to $128 in 2021.
Earlier this month, the National Retail Federation said while the impact of the pandemic on the nation’s economy will be a key factor in retail sales during the 2021 holiday season it remains upbeat in its forecast for record growth as US consumers are spending because they can.
CEO of the NRF, Jack Kleinhenz said strong growth in income and “stockpiled savings” should help spending overcome inflation that has been driven both by consumer demand and supply chain disruptions. The challenge when – and if – sales begin to fall will be whether the drop is caused by weaker demand or reduced product availability.
