Will Your T-Shirt Prices Stay Recession Low?

Monday 14th of November 2011 06:29:15 PM

Will Your T-Shirt Prices Stay Recession Low?

It’s a fact that retailers have had to significantly lower prices over the last couple of years during the recession in order to attract shoppers. Yet even as they dropped prices, the cost production has been rising. This is not a formula for survival. That is one reason why people have been increasingly shopping online. Online retailers can offer low pricing for clothing like cheap t-shirts and can keep the pricing low even after the recession ends thanks to lower overhead costs. In other words, you can buy inexpensive clothing now and know the retailer will still be around when it’s time to make another purchase because online vendors are more recession-proof than traditional brick-and-mortar stores.

The recession has created an unusual event in that customers are now used to getting big discounts on clothing. The retailers had hoped that the recovery would be further along by now and could begin moving towards more normal pricing. Instead there are sign that UK shoppers and shoppers in other countries are once again adopting financially frugal ways. Now clothing retailers are finding it difficult to raise prices and that is cutting into profits.

Of course, if you had been shopping for your t-shirts and sweatshirts online you wouldn’t be worrying about big price increases. But if you shop at the local mall, you may find prices going up. How consumers will respond to the price increases is what worries retailers. With consumers still so price sensitive, clothing stores are facing a highly competitive market aiming for scarce consumer spending. The current plan is to raise prices on some items but not on everything according to stores like Gap, Inc. and Aeropostale.

The economic recovery continues to be erratic and that is making retail pricing erratic too. The bottom line is to shop online if you want consistent and low pricing.