The cost of school uniforms in the UK has fallen to an all-time low, according to new research, as retailers battle it out for a slice of the GBP694m (US$1.09bn) a year school uniform and equipment market.
The research from Verdict shows prices have dropped in the past six years as retailers have vied with each other to offer lower and lower prices. Indeed, the average price of a standard uniform has fallen by almost 21% since 2004.
“It’s an important market financially so retailers have reduced prices to get a share of the action; but it’s also important psychologically – those that offer low prices on uniforms are seen as giving a helping hand to hard pressed parents,” explains Neil Saunders, consulting director at Verdict.
Grocery chains have led the drive to reduce prices, and as a consequence have rapidly expanded their share of the market.
In 2004 grocers and supermarkets had just under 13% of the market; today over 26% of sales go through their tills. “The grocers provide great prices combined with real convenience, it’s a winning offer all round,” says Saunders.
But deflation has taken its toll, pushing the total value of uniform and equipment sales down from GBP861m in 2004 to GBP694m today – a decline more than 19%.
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By GlobalData“Reducing prices in school wear does not result in a commensurate increase to volume sales – mainly because it’s a need to have rather than a want to have product and most families will not buy more than they require,” Saunders says.
Many independent retailers have also struggled to compete on price and have lost sales and market share as a result.
Price checks show a uniform for boys aged 12-13 (including a blazer, two knitted jumpers, five shirts and two pairs of trousers) has fallen from GBP78 in 2004 to just GBP28 in 2010. For girls aged 12-13, a uniform consisting of a blazer, two knitted jumpers, five blouses and two skirts now costs just GBP31.75 compared with GBP62.95 in 2004.