Clothing prices in Spain could rise by 5% over the six months through February, which includes the Christmas holidays, according to a survey of retailers by trade group ARTE, which counts among its members Inditex, owner of Zara, H&M and Primark.
The survey, the first conducted by the ARTE group, revealed that 75% of executives who participated expected price increases of between zero and 5%, at a time when inflation is slowing in Spain.
“The evolution of the price of raw materials, the increase in the cost of transport and the increase in costs linked to new environmental requirements imposed on companies will lead to a slight increase in prices in the sector over the next six months, in a context moderate inflation”, indicates the ARTE survey.
The EU's harmonized annual inflation rate stood at 1.8% in the 12 months to October. The EU inflation rate for the same period was 2.3%.
A majority of the 16 managers interviewed as part of the survey carried out by ARTE in October expect their prices to change between 0 and 5% during the Christmas shopping period compared to the previous half-year, which extends from March to August this year.
Executives forecast that clothing and footwear prices will rise an average of 2.2% between September and February, similar to the 2% increase in the textile retail sector during the same period last year, according to the survey.
However, the remaining 25% of executives said prices could fall, but not by more than 5%.
During the September to February period, dominated by holiday shopping, 77% of major retailer executives expect clothing sales in Spain to increase by 10% compared to the previous six months.
While 8% of executives expect clothing sales to increase 10 to 20% during this period, 15% say they fear stagnation or a decline of up to 5%.
The country plans to welcome a record number of tourists in 2024, contributing to forecasts of faster economic growth than in other European Union countries.
