United States Of America : Men Apparel Retail Prices Fall 1% in April

The Labor Department reported Friday retail prices for men's apparel in April fell a seasonally adjusted 1 percent against March, as stores took advantage of imported bargains and sought to lure shoppers with sales. Compared to April 2002, retail prices for men's apparel were off 3 percent, part of a long-term deflationary slide.

Carl Steidtmann, chief economist at Deloitte Research, said the April decline in men's apparel prices - and the 0.6 slide in apparel prices overall - can be largely pegged to import bargains, which have become more generous as quotas on foreign garments approach their final Jan. 1, 2005 elimination. Limits on apparel and textile imports by World Trade Organization members are approaching the end of their 10-year phaseout. "That's primarily driving all of this," Steidtmann said. "You have a mad global scramble to find ever lower-priced places to produce apparel."

However, Steidtmann said continued sluggish demand for apparel remains a factor in retail price-cutting. Compared to April 2002, all apparel prices declined 3.8 percent. Retail prices for boys' apparel fell 0.6 percent in April against March and dropped 6.8 percent from year-ago levels. A Labor apparel analyst also blamed damp weather for retail discounts. Consumers "aren't buying as much spring and summer items as retailers expected," she said.

In the overall economy, prices for all retail goods in April fell 0.3 percent, the largest drop in 18 months. The drop in overall retail prices follows last week's statement by the Federal Reserve about the potential of a destabilizing decline in prices.

In March, retail prices increased 0.3 percent. In April, retail prices, when compared to the year before, show relative strength with a 2.2 percent gain. Meanwhile, among the categories of men's apparel tracked by the government, retail prices for suits, sport coats and outerwear fell 0.5 percent in April against March and dropped 1.7 percent from April 2002, as prices for furnishings declined 1.4 percent for the month, but increased 0.4 percent over the 12 months.

Retail prices for shirts and sweaters increased 0.2 percent for the month and fell 3.1 percent from year-ago levels, as prices for pants and shorts dropped 0.9 percent for the month and plunged 7.2 percent over the year.