With each new sales period, the hope that customers will flock to their stores is reborn among ready-to-wear retailers. Except that since the end of confinements, this wait has often proven to be in vain, while the sector is going through an unprecedented crisis and consumers are abandoning traditional brands. Last summer, during the four weeks of markdowns, sales were down 1% compared to the same period in 2022, continuing the trend from previous years. This should again be the case this time, this Wednesday January 10 marking the start of the winter sales. In a gloomy economic context, where the savings rate remains at a high level and where inflation experienced a surge at the end of the year – 3.7% year-on-year in December, after 3.5% in November -, now is not the time for consumption.
Rethink their model
The year that has just ended is particularly notable for ready-to-wear. The sector has witnessed, helplessly, the serial fall of some of its most emblematic mid-range brands: Camaïeu, Gap, Naf Naf… The Paris commercial court has seen the cases file in recent months, ruling for some judicial liquidation, when others are still suspended like Pimkie or Kookaï. So, rather than waiting for a miracle to happen in the next four weeks, these companies have every interest in rethinking their model. A good season would offer a reprieve. Conversely, failure could precipitate their downfall.
The rise in prices is obviously a determining factor in the choice of the French to turn away from the mid-range. On the one hand, low cost – Shein, Primark in the lead and, to a lesser extent, Zara – is a hit. On the other hand, the high end does not encounter any difficulties, its customers not being affected by purchasing power problems. Between the two, historic brands are caught in a vice. To bounce back, they will have to invest in digital where they are certainly present, but not at the level.
On the shelves, the era of “everyone” is over. Customers demand personalization and originality. Shein and Zara are able to meet these aspirations, with their trend analysis tools, but at the expense of the environment. Added to this is the rise in power of second hand goods. The brands have all started to take advantage of it. But it will be difficult to catch up with Vinted, especially since the economic model is often fragile or even uncertain. In stores, brands will also have to find the right formula to attract customers again: renewed customer experience, refurbishment of sales locations, etc. As long as they have the means.