Poles cut down on expenses but fashion does not come first
PMR’s estimates indicate that in 2022 the market will record growth again, mainly on the back of increased demand for clothing and footwear (as social life is getting back to normal), price rises and higher market potential in volume terms (due to the influx of refugees from Ukraine). Still, inflation is a constraint on real growth of the market (we expect it to reach 14% YoY in real terms).
In 2021 the value of the clothing and footwear retail market – as a result of a low base and deferred demand after the previous year – increased by 22% in nominal terms, according to PMR’s report “Clothing and footwear retail market in Poland 2022. Market analysis and development forecasts for 2022-2027.”
More data about the current situation of the Polish fashion market you will find in the PMR report:
We’ll pay more and more for clothes and shoes
Price increases are some of the key challenges for the market now and will continue to be so in the coming years. Between 2022 and 2023, we expect around 14% inflation on an annual basis. Prices of clothing and footwear will also go up, but at a lower rate than overall inflation. However, price increases in other product categories will reduce the purchasing power of Polish consumers, affecting their shopping decisions, also for fashion items.
Revision of household budgets is already noticeable
In August 2022 PMR conducted a survey on a purposive random sample of respondents. At the recruitment stage of the survey, basic demographic variables – gender, age and place of residence – were considered in order to make the sample structure as similar as possible to the overall Polish population. The survey showed that 80% of the respondents already declare they are cutting down on their spending (in general), but it is not smaller clothing and footwear purchases where they look for major savings.
80% respondents
declare they are cutting down on their spending
According to PMR’s study, food services are primarily to experience the effects of consumers’ slashing their household budgets. 59% of the those declaring reduced shopping said that they were limiting their spending on food delivery, eating out and going out to spend their free time. That was also the category most frequently cited by the respondents as one where their spending was reduced most. It was followed by retail segments where the average amounts spent on a single visit to a shop are high (home furnishings, consumer electronics). However, 45% of the respondents who reduce their spending do so in the case of clothing and footwear, although only 5% treat this category as the main area to look for savings. The oldest consumers far more frequently say that they are cutting down on fashion purchases (56% of those aged 55 or more versus 40% of the respondents up to 34 years of age).
Categories in which Poles are currently cutting down on spending
According to PMR, lower spending on clothing and footwear does not yet involve seeking other ways to be supplied with such items. Those who reduce their fashion purchases are not more frequent second-hand shoppers, do not exchange clothes or shoes more often, and do not repair their worn or damaged clothes more often than consumers who do not limit their fashion spending.
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Senior Retail Analyst