People have less money due to inflation, so they stop buying mid-priced clothes and shoes, according to data released by Zalando today. It is the largest operator of e-shops with clothes and footwear in Europe, since 2018 it has also been operating in the Czech Republic.
In the Czech Republic, clothing and footwear will become more expensive this year since the 1990s. At the same time, people in the Czech Republic have been accustomed to only small increases in clothing and footwear prices over the past quarter century. And because wage growth was significantly faster than growth in clothing and footwear prices, in real terms – in relation to the average wage in the Czech Republic – these items have fallen by tens of percent since the beginning of the millennium. In other words, for the average wage, one bought significantly more shoes or clothes in 2021 than for the average wage in 2000.
However, the clothing and apparel segment is also badly affected by the current sharp pan-European inflation wave. According to Zaland, people all over Europe, including the Czech Republic, can literally “beat” themselves for discounts. There is more interest in discount offers than before the onset of inflation. In addition, interest in mid-priced clothing and footwear is declining. It is interesting that the search for luxury goods of the highest price category does not decline.
Sad record. Inflation in Turkey has risen by tens of percent, the most in 20 years
Inflation in Turkey rose to 69.97 percent in April and is at another high in more than 20 years. High prices for transport as well as expensive food contributed to the growth, the Turkish statistical office said. A year ago, inflation was slightly above 17 percent.
The inflation crisis affects the middle classes the most
Thus, the current inflation crisis seems to be the worst hit in the middle classes. Not only in the Czech Republic, but also elsewhere in Europe. These layers must resort to buying the cheapest clothing or the cheapest footwear. At the same time, rich people continue to shop as they used to. They can cope with rising energy, fuel, housing and even food prices better than the middle class. Simply because, thanks to above-average income, they create a thicker financial cushion, which protects their standard of living even in times of rapid inflation.
Overall, however, sales, which Zalando also released on Thursday, fell short of expectations. The company fell into the deepest loss since the first quarter of 2020, when it was pulled down by the then beginning pandemic. Its shares fell almost five percent in response today. The reason for the decline is the generally unsatisfactory demand for clothing and footwear throughout Europe. But even that, even companies like Zalando, which have higher costs due to inflation, are not able to pass on all their rising costs to customers.
The German DAX index will expand. He will be joined by Zalando and Puma
The DAX has lost against other European and US indices over the past year. Behind the changes is also the effort to expand it with more growth stocks.
Today, the Internet is as important for the Czech economy as the entire construction industry
Today, it is exactly thirty years since the Czech Republic’s connection to the Internet. Since then, it has experienced a huge boom that has marked the lives of each of us. And it also gave rise to the Internet economy. Today, it represents about 5.5 percent of the Czech Republic’s gross domestic product, ie about 360 billion crowns a year. Its significance is thus comparable, for example, to construction. The pandemic also gave her impetus.
–
:strip_icc()/i.s3.glbimg.com/v1/AUTH_08fbf48bc0524877943fe86e43087e7a/internal_photos/bs/2022/G/E/JA7hAnQAiwTZrtPCx8jg/pro-endurance-02.jpg?resize=150%2C150&ssl=1 "Samsung announces microSD card that promises to last 16 years | Storages")