Pricing Opportunities For Winter Accessories
- Entry price points have swelled on beanies, scarves and gloves YoY from 2021 as basic categories can carry small upcharges without deterring the customer, driving additional profit on core volume lines and helping to counter inflating costs.
- Exit price points have increased by between 15%-30% on scarves and gloves as retailers invest in premium materials like cashmere and suede, buying into better basics. Seen as more of a fashion item, beanies were the only category not to see this trend across both regions – retailers should tread carefully when buying into higher-priced styles.
- An appetite for premium products is still apparent, seeing mid-level brands such as Ted Baker increase average in-stock price within gloves YoY, reducing stock on lower ticket items where they may not be able to compete with the mass market.
- Discount proportions have significantly dropped by as much as 68% on scarves versus 2021. Sales look to be more positive in Fall 2022, with beanies seeing first majority sell outs increase by 43% YoY. Capitalize on current demand for cold weather areas and only use discounting for overstock.
- While gifting edits and wardrobe essential stories return as the perfect backdrop for cold weather accessories, utilize emerging stories, like the World Cup and cozy edits, to capitalize on their popularity.
Beanies
While acting as both a commodity and fashion item, pricing on beanies has followed an alternate trend to other cold weather categories, seeing more opportunity in increasing entry price points versus exit. As costs become more challenging – battling exchange rates and surging material prices – increasing entry price points by 25% (as seen in the UK) could have substantial gains on volume lines, with little effect on the customer. In the US – excluding Banana Republic’s $130 merino beanie, which is currently discounted at 66% and Zara’s $80 cashmere beanie – YoY exit pricing has decreased from $90 to $80, aligning with the UK as retailers strip out investment in this high-priced area.
Between August and November, beanies saw the highest first majority sell-out rate in accessories arrivals, with 41.9% of styles sitting within the £5-£10/$5-$10 bracket, fortifying low price appeal. These are also great items to be positioned by tills or add-on purchases to aid in reaching minimum spend for free delivery, so ensure they are visible to the customer both in store and online.
US Beanie Pricing YoY
Products new in Aug 7 – Nov 7 2022 vs. 2021
| Sell Price US | 2021 | 2022 | YoY Change % |
| Entry pp. | $5.99 | $5.99 | 0% |
| Avg. pp. | $27.06 | $25.71 | -5% |
| Exit pp. | $98.00 | $130.50 | 32% |
UK Beanie Pricing YoY
Products new in Aug 7 – Nov 7 2022 vs. 2021
| Sell Price UK | 2021 | 2022 | YoY Change % |
| Entry pp. | £4.00 | £4.99 | 25% |
| Avg. pp. | £13.52 | £13.19 | -2% |
| Exit pp. | £85.00 | £59.00 | -31% |
Arrivals
Over the three months, arrivals on brown hues have increased 67%, the highest across all colorways, taking options from downward trending navies that dropped 37% from 2021. The use of ‘basic’ within product names has seen a surge in new arrivals, up 176% YoY, enticing consumers to entry-price point items. As value branding remains a focus in the current retail climate, consider this a quick hack into the trend. Mentions of cotton have dropped 35% versus 2021, as retailers feel the strain of raw material prices, noting that synthetic fibers like polyester, are up in assortment by 6pp YoY.
Trending Up
Percentages based on mentions YoY Aug 7 – Oct 7 2021 vs. 2022
Christmas +67%
Browns +67%
‘Basic’ descriptions +176%
Trending Down
Embroidered -30%
Navies -37%
Cotton -35%
Scarves
EDITED tracked arrivals as being down by 28% YoY, but within this, cashmere and wool have seen increased investment. Wool climbed 5pp and cashmere 4pp of the scarf assortment from 2021, contributing to YoY exit price point growths of 15% in the US and 30% in the UK. Marks & Spencer’s acquisition of Jaegar has resulted in its exit price points increasing from £49.50 to £130, indicating the importance of still catering to a more premium customer.
However, the most significant increases were felt in the entry price bracket in the US and UK, climbing 67% and 50%, respectively. ARKET’s entry-priced 100% wool scarf has gone from £45 in 2021 to £55 in 2022, seeing similar moves at Bershka, with its basic 100% polyester option climbing from $19.90 to $27.90. As scarves are a lower ticket item, consumers should not be deterred by small entry price increases. Still, retailers should support sales by promoting styles within better basics and winter warmer stories this fall.
US Scarves Pricing YoY
Products new in Aug 7 – Nov 7 2022 vs. 2021
| Sell Price US | 2021 | 2022 | YoY Change % |
| Entry pp. | $6.00 | $9.99 | 67% |
| Avg. pp. | $45.44 | $60.28 | 33% |
| Exit pp. | $200 | $229 | 15% |
UK Scarves Pricing YoY
Products new in Aug 7 – Nov 7 2022 vs. 2021
| Sell Price UK | 2021 | 2022 | YoY Change % |
| Entry pp. | £4.00 | £6.00 | 50% |
| Avg. pp. | £22.66 | £27.63 | 22% |
| Exit pp. | £99.99 | £130.00 | 30% |
Arrivals
While checks remained the top stock pattern in arrivals, staying fairly level versus 2021, stripes saw a 167% growth in options, climbing from 9% to 20% of the patterned mix. New designs featured horizontal stripe settings at Gant and M&S that fed into preppy themes, and ombré stripes at Zara. Snoods saw investment drop 70% this season as demand for face coverings waned due to COVID restrictions having been lifted this year. Navy hues also dropped back, mirroring the color story of beanies, with browns creeping up in its place.
Trending Up
Percentages based on mentions YoY Aug 7 – Oct 7 2021 vs. 2022
Stripes +167%
Browns +10%
Wool +30%
Trending Down
Snoods -70%
Navies -32%
Reversible -89%
Gloves
Following the scarves category, pricing on glove arrivals has seen the biggest YoY increase within entry price points, growing 34% in the US and 20% in the UK. As an entry-level priced category across apparel and accessories, increasing prices on volume lines by a small percentage can improve bottom-line profits without deterring the customer. Matalan’s entry-price gloves were priced at £2.50 in 2021, but have been increased to £3 this season, aiding earnings by 20%. In contrast, Ted Baker has seen its average in-stock price increase from $94.44 in 2021 to $115.63, seeing more value in a premium offer, as mid-level brands will find it hard to compete with the mass market on entry-value items. Both strategies should capitalize on the current demand for winter warmers amid the cost of living crisis and ready promotions of premium styles for the peak gifting season.
US Gloves Pricing YoY
Products new in Aug 7 – Nov 7 2022 vs. 2021
| Sell Price US | 2021 | 2022 | YoY Change % |
| Entry pp. | $5.99 | $8.00 | 34% |
| Avg. pp. | $54.71 | $50.70 | -7% |
| Exit pp. | $130.00 | $150.00 | 15% |
UK Gloves Pricing YoY
Products new in Aug 7 – Nov 7 2022 vs. 2021
| Sell Price | 2021 | 2022 | YoY Change % |
| Entry pp. | £2.50 | £3.00 | 20% |
| Avg. pp. | £24.55 | £25.64 | 4% |
| Exit pp. | £80.95 | £95.00 | 17% |
Arrivals
Leather remained the top stocked material YoY, but gains were noted within suede and fleece, with mentions growing 57% and 100% versus 2021, respectively. Fleece styles also included lined options, but fed into outdoor and sporty themes, where suede and leather catered to a smarter aesthetic. Black remained the most popular color, growing 36% YoY, making up 57% of total new options. Mentions of touchscreen halved in arrivals YoY, as importance shifted to more investment materials and warmer-lined areas.
Trending Up
Percentages based on mentions YoY Aug 7 – Oct 7 2021 vs. 2022
Suede +57%
Black +36%
Fleece +100%
Trending Down
Touchscreen -50%
Greys -28%
Cashmere -50%
Discounting
Discount proportions have significantly dropped this season versus 2021, by as much as 68% on scarves. This also corroborates with discount depths, as beanies and scarves have stayed at 50%-60%, while gloves increased by just 10%. Current retail trends are seeing a spike for thermal fabrics and winter warmers, with cold winter accessories prospering from the demand. First majority sell outs on arrivals of beanies and scarves have grown by 3pp and 2pp, respectively, indicating sales are positive, while gloves have seen a sharp drop by 5pp, supporting the increased discount depths for the category in fall.
Retailers may also hold off on heavier discounting until Black Friday when discount strategies are predicted to be more aggressive. As temperatures have only just started to drop, this area has an opportunity to prosper going into the new year, so ensure margins are protected by using Black Friday to clear through overstocks and keep a credible assortment for early 2023.
US & UK Cold Weather Accessories Discounting YoY
Products in stock Nov 7 2022 vs. 2021
| Category | Discount Proportion 2022 | YoY Change % | Discount Depth 2022 | YoY Change % | |
| Beanies | 31% | -23% | 50%-60% | Level | |
| Scarves | 12% | -68% | 50%-60% | Level | |
| Gloves | 9% | -55% | 30%-40% | +10% |
Promotional Opportunites
Gifting
Mentions of gift guides on email have already increased by 78% MoM in the first week of November, so now is the opportune time to push gifting, using accessories for stocking stuffer edits and lower-ticket pricing callouts.
Further Reading:
The Top Ten Gifting Edits To Action
World Cup
Retailer promotions for the World Cup began to ramp up throughout November, promoting sporty product areas. For those who haven’t invested in football-specific products, utilize accessories to target consumers at home who will be venturing out into the cold to watch the tournament with friends.
Further Reading:
How The World Cup Will Impact Retail
Cozy Edits
A trending story this fall, retailers are capitalizing on the demand for cold weather categories amid the cost of living crisis. Be sure to merchandise hats, scarves and gloves in edits to increase the category’s exposure.
Further Reading:
Thermals – A Cost Of Living Essential
Better Basics
Whether inventory is weighted to premium options or entry-priced basics, creating wardrobe essential edits is a perfect backdrop to merchandise beanies, scarves and gloves as a way to drive additional sales. Consider pivoting to more of a premium-focused story for cashmere styles.
Further Reading:
Why Basics Are More Important Than Ever
Appendix
Date analysis
Products new in Aug 07 – Nov 07, 2022 vs. 2021 unless otherwise stated
US & UK retailers considered
Menswear: Abercrombie & Fitch, American Eagle Outfitters, Aéropostale, Arket, Banana Republic, Bershka, boohooMAN, Forever 21, Gant, Gap, H&M, J.Crew, Levi’s, Madewell, Mango, Marks & Spencer, Matalan, New Look, Pull&Bear, River Island, Ted Baker, UNIQLO, Weekday, Zara, Zumiez