British fashion brands have dropped their prices by 12% since “Brexit Day” on 31 January as opposed to European brands who have increased their prices by 9%, new data revealed.
LoveTheSales.com analysed 1 million items of branded clothing, both on sale and at full price, which has revealed that British-based brands have dropped their prices since the end of January in contrast to prior years when prices increased in February with a rise of 4% and 5% in 2018 and 2019 respectively.
In addition there are a greater number of items on sale in February than there had been in prior years with 15% more discounted British branded products on the market since January, versus a drop of 22% of European branded products on sale. This represents a swing of 37% between UK and European brands.
Stuart McClure, Co-founder of LovetheSales.com, said the untypical behaviour of British brands this year could be down to brands responding to a weakness in consumer confidence and a desire to generate cash ahead of Brexit proper, when the transition period ends.
“Even though fashion brands have yet to be impacted by changes to tariffs on imported goods and materials, our price data suggests retailers and manufacturers have reacted quickly to the UK’s exit from the European Union,” McClure said.
“There are three potential reasons that are likely drivers of this price drop behaviour from British brands, concern over consumer confidence, the need to move product out of European locations and, potentially, the desire to build a war chest of cash in anticipation of production costs increasing come the end of the transition period,” he added.
Brands tracked for the study by LovetheSales.com, a platform that unites fashion sales all in place, included British labels such as Barbour, Jack Wills, Ted Baker, and Superdry and European brands including Lacoste, Hugo Boss, Armani and Diesel.