US shoppers are less sensitive to pricing across in every clothing category including womenswear, menswear, and children's wear, a new study suggests, creating many opportunities for retailers to increase prices.
The comparison of price elasticity and price sensitivity examined trends on hundreds of thousands of items processed through InsightSuite, First Insight's predictive analytics platform between September 2017 and April 2019, along with other proprietary sources.
"Over the past two years, we have experienced a strong labour market, growth in disposable personal income particularly among millennials, and elevated customer confidence, which is creating an environment where shoppers are less sensitive to pricing across many retail categories and subcategories," said Greg Petro, CEO of First Insight.
"This shift is creating many opportunities for retailers and brands, but there is still a disconnect in several subcategories between what they're charging, and what consumers would actually spend."
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