How Brexit Is Causing Fashion Prices To Rise

BY Ella Alexander / Oct 17 2016 / 21:12 PM

​Yes, luxury goods might be cheaper for tourists now, but Brexit's long-term impact on fashion will benefit no one

How Brexit Is Causing Fashion Prices To Rise
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Topshop Unique S/S17

As the value of the pound drops to an all-time low thanks to Brexit, prices of ready-to-wear and accessories are expected to rise.

As reported this week, Louis Vuitton bags are consequently now cheaper in the UK than anywhere else in the world - and it looks as if the fashion industry will have to up its prices to compensate.

Companies that import or pay for materials abroad – something most British brands rely on - are now facing costs jumping by a fifth as prices of importing, manufacturing and sourcing rise. To address this, high-street retailer Next has already confirmed that it will increase prices by as much as five percent next year.

"We've always taken the view that if our costs go up, then our selling prices will go up and vice versa," Lord Simon Wolfson commented. 

While Next is the first to officially address the issue, experts predict the pressure for other brands to increase their prices will grow over the next coming months.

"Shop prices haven't risen yet and we have just had the 24th straight month of clothes getting cheaper as a result of stiff competition and the intense fight between online and shops, but that will start to change soon," Stephen Robertson, chairman of Retail Economics, told The Telegraph.

Make the most of those cheaper Vuitton bags while you still can.

Via Harper's Bazaar UK