Back-to-school bargains: uniform prices lower than ever

The £694 million (about R7.85 billion) a year school uniform and equipment market has been subject to rapid price deflation over the past 6 or so 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" comments Neil Saunders, consulting director at Verdict.

Deflation takes its toll

Verdict's research shows that the grocery chains have been at the forefront of reducing 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.

Deflation has taken its toll on the market, however, and the total value of uniform and equipment sales has fallen from £861m in 2004 to £694m (about R9.73 billion down to about R7.85 billion today) today - a decline in excess of 19%. "Reducing prices in school ware 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" comments Saunders .

Many independent retailers have also struggled to compete on price and have lost sales and market share as a result.

Data

The table below shows the cheapest price for kitting a child out with school uniform; please note that these prices do not take account of special promotions (i.e. a whole uniform for £10) but rather are for individual items.

*To convert to SA rands, exchange rate at time of posting this news was R11.3/£
Notes:

• Boys uniform include: blazer, 2 knitted jumpers, 5 shirts, 2 pairs of trousers;
• Girls uniform includes; blazer, 2 knitted jumpers, 5 blouses, 2 skirts;
  
• The prices for each item are the cheapest available at the time the price check took place.

Price checks took place in the first week of August in both years.