A planned 100-yen (approximately $0.63) increase on a pair of Uniqlo socks drew objections from Japanese shoppers frustrated by rising prices. The retailer dropped the increase in response.
Here's what to know
Discounts on purchases of three or more pairs are set to end at Uniqlo, even though the retailer has canceled a price increase for its popular 290-yen (approximately $1.83) socks, according to The Straits Times. Fast Retailing Co. owns and operates the chain.
The proposed change would have put a pair at 390 yen (approximately $2.46). It was part of the clothing price increases the company announced in October because of rising input costs, but Uniqlo abandoned the sock increase within two weeks.
More background
Retailers must decide how much of their rising costs to pass on to shoppers who grew accustomed to stable prices during decades of deflation.
Shrinking household spending was making it harder for companies to protect their margins without losing customers. A consumer price measure that excludes fresh food and certain other categories rose 3.2% in September from a year earlier, according to The Straits Times.
The fast-fashion industry's overproduction of cheap clothing contributes to water contamination and air pollution, alongside its reliance on exploitative labor practices.
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Cheaply made garments often wear out quickly and need frequent replacement, undermining the savings shoppers might expect from a lower upfront price.
What's being done?
Fast Retailing revisited its plans for both higher sock prices and an end to multipair discounts after shoppers objected.
"As socks are an essential everyday item, in Japan we reconsidered our planned price revision," a Fast Retailing spokesperson said, according to The Straits Times.
Some shoppers said the impending price increase had prompted them to stock up.
"The fact that they decided not to go ahead with the price increase suggests they were very conscious of consumers' resistance to higher prices," said Atsushi Takeda, chief economist at Itochu Research Institute. "It's no longer just lower-income consumers who are feeling the strain, but consumers somewhat higher up the income scale are also increasingly becoming wary of rising prices."
Where can I learn more?
The backlash over Uniqlo's sock prices shows how closely shoppers are watching what they spend on clothing.
• Shein's European sales fell after price increases, amid tariff and shipping turmoil.
• Inflation is pushing U.S. shoppers toward thrift stores as used apparel enters the CPI.
• One shopper says clothes that never get worn cause more regret than expensive purchases.
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