The combined effect of the supply chain crisis at all ports and overland transportation delays due to a lack of enough drivers is leading fashion executives to increase fashion apparel prices by 3% next year, according to The Business of Fashion and McKinsey and Co. That doesn’t stop 15% of the polled executives from saying that they will increase prices on apparel by more than +10%.
According to the report, inflationary pressures are caused by a combination of material shortages, transportation bottlenecks, and rising shipping costs. The study surveyed more than 220 fashion executives and experts.
Not mentioned in the report is the possibility that some fashion merchandise will arrive too late for holiday selling and stores may be forced to take markdowns on those new arrivals after the holidays in order to find customers. This may keep some prices at a manageable level.
