Zara Plans to Keep Australian Prices as Dollar Value Falls0
Zara Plans to Keep Australian Prices as Dollar Value Falls
Known for offering quality fashion at affordable prices, Zara vows to keep their prices low, despite the 17 percent decline in Australian currency value.
This is great news for fans of the fast-fashion chain, although it is bad news for domestic suppliers and retailers.
According to The Australian Financial Review, suppliers have already given notice to the public that prices for fashion clothing, basic apparel and underwear will rise significantly in the second half of 2015, as currency hedges roll off and new-season stock arrives in stores.
However, Zara’s decision to maintain retail prices will limit the ability of smaller brands to raise prices to recoup the cost of importing stock.
Local brands and retailers will have very little competitive edge to the mega retailer. Global chains such as Forever 21, H&M and Uniqlo are likely to follow Zara’s lead since they can afford to subsidise across markets.
Zara Australia is 20 percent owned by billionaire retail mogul Solomon Lew’s family and 80 percent owned by Spain’s fashion giant Inditex Group, which upholds a stable pricing policy.
Zara is one of the first international retailers to invade the country, opening its very first Australian store at Sydney’s Pitt Street Mall in 2011. The retailer has since been patronised by Australian shoppers desperate for its quick turnover of fashion range and styles often straight from the runway.
It has been quickly followed by other global retailers including Topshop, H&M and Pottery Barn, who are keen to capitalise on Australia’s fashion-loving market.
Zara’s stable prices mean you can get more for your dollar. Don’t waste this golden opportunity to bag new fashionable finds at Zara’s flagship store in Pitt Street.