Retailers from Primark to Shein are winning over U.S. shoppers with cut-price clothes as high inflation makes many people more price-sensitive
Melissa Sheer of Summit, N.J., used to buy her T-shirts at Gap, but recently switched to Shein. “When you can get a T-shirt for $5 at Shein, why would I pay $24.99 at Gap?” said the 49-year-old owner of a public-relations company.
Ms. Sheer said that even though the Shein shirts are of lower quality, made of a polyester blend rather than the cotton and modal used by the Gap, they hold up well enough. “With inflation, price is taking precedence over quality for me right now,” she said.jade gao/Agence France-Presse/Getty Images An analysis by Neil Saunders, a GlobalData managing director, found that Primark had the lowest prices on a basket of similar goods, followed by Shein, H&M and Forever 21. Old Navy, Gap and Uniqlo were more expensive, sometimes by a multiple as high as four times. The basket in the analysis included a women’s camisole top and skinny jeans and a men’s graphic T-shirt and sweatpants.The retailer’s lease in New York City’s SoHo neighborhood is for one year, Mr. Yunoki said.
Consumer spending has held up relatively well despite inflation, but experts say we’re approaching an inflection point. WSJ’s Sharon Terlep explains the role ‘elasticity’ plays in a company’s decision on whether to raise prices. Photo illustration: Adele Morgan GU keeps costs down by producing a narrower selection of clothing compared with more traditional chains that can make tens of thousands of items a season, Mr. Yunoki said. He said the smaller production runs also reduce damage to the environment, while making it easier for shoppers to coordinate outfits.
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