Dark comeback for the ready-to-wear sector

Even the first day of the new school year no longer has its effect when it comes to dressing children. Forced to make trade-offs, families focus on the essentials: school supplies. “Every year, at the start of the school year, I buy a new pair of sneakers for the children, and for each of them a waterproof hooded jacket, says Audrey, mother of two boys in primary school. As they wear everything out very quickly, I did not choose the first prizes. But I bought everything on sale, at 50% off, in August. I haven't gone back to the shops since, so as not to be tempted by the superfluous.

His boys wanted football shirts, a top that is all the rage in the playgrounds. "I said yes, but for their birthday or at Christmas," admits Audrey. Olivia, mother of three children (the youngest is in kindergarten and the other two in primary school), did not hesitate to downgrade. “Everything is increasing so much this year!” she laments. Usually, for the start of the school year, I like to buy them an outfit at Cyrillus. I spent two hours at C

Like Audrey and Olivia, 65% of parents will restrict themselves to back-to-school expenses for their children, according to a study by CSA Research for Cofidis (among a thousand French people, interviewed at the end of June). For 59% of these parents, clothing is the first item of expenditure on which they plan to reduce their budget. "Renewing children's wardrobes for the start of the school year is over for many," insists Anne-Laure Marchal, client director at CSA Research's company division. We are also seeing a marked slowdown in purchases of sporting goods.” To save money, children wear their clothes as long as possible. Parents also reuse old outfits, worn by elders who have grown up. They also buy, much more often, second-hand on the internet but also in jumble sales and garage sales.

Ready-to-wear brands are saddened. “After a rather good return to school in 2022, that of 2023 is penalized by a drop in the purchasing power of families, worn down by inflation, recognizes Yohann Petiot, director general of the Alliance du commerce. All is not played. But August has already been difficult, because of the heat wave which deterred many French people from going shopping. Most brands are expecting a drop in volumes, which they will not be able to offset with an increase in prices, due to intense competition.

After years of declining consumption, we can therefore expect further business failures. Already at the end of June, Du Pareil Au Même was placed in receivership and Sergeant Major in safeguard proceedings. The General Holding for Children, their owner, had announced the closure or sale of 47 Sergent Major and 87 Du Pareil Au Même stores.

In this dark context, the brands capable of holding their own can be counted on the fingers of one hand. Not surprisingly, they are betting on low prices. Decathlon, traditionally, does very well. Primark is gaining market share.

The brand has launched an "anti-inflation basket" for this new school year and reduced the prices of hundreds of items from the autumn-winter children's collection. In this period, children's turnover represents more than 35% of Primark's sales. A set consisting of a long-sleeved T-shirt, leggings and a zipped hoodie goes from 13 euros (in 2022) to 10.10 euros this year. “Like-for-like, sales volumes are higher than last year,” says Christine Loizy, director of Primark France. A first wave of purchases was made in the wake of the payment of the “returned allowance” on August 16. “We welcome a lot of new customers, who will probably come back during the year,” says Christine Loizy.

In the same vein, Kiabi offers for example a set (top lower) for children at 8 euros. “These special promotions are part of our desire to always be alongside families,” insists the brand belonging to the Mulliez galaxy (Auchan). Kiabi is also highlighting its second-hand offer. This offer, which it is developing on a large scale, is already on the shelves in 231 Kiabi stores in France.