Currency-Gamble: Mango-dress €13 more expensive in the UK

Shopping-Economics

 

 

Popular high street fashion stores like Mango, Zara and H&M can be found all over the world and are generally affordable. The pricing of the clothes is adapted to the country to match the competition and be in relation to what the chain store has to pay in wages and taxes. But does the management get this right?

A recent visit to the high-street within the Eurozone and the UK revealed that Mango  takes advantages of the different currency in Britain. The Spanish clothing chain sells a dress for €29,99 in the Eurozone, which is £34,99 in the UK. It may have escaped the pricing managers attention: but the pound Sterling is  stronger than the Euro, which means that the same garment is a hefty €43,70 in the UK (if converted back to Euros).

Is it more expensive to  run the shops in the UK? No, not really:  the minimum wage in the UK is £6.19 (€7.73) per hour compared to €7.89 in Germany. The taxes or electricity is about the same and there is no other reason for MANGO to make their clothes more expensive in the UK unless the clothing chain he victim of a not-know Channel mafia coup that charges €13 per item to be shipped across the Channel or maybe MANGO just wants to express their sympathy for poor Eurozone countries?

Screenshots taken from Online Stores

 

While MANGO is probably the most exaggerated, ZARA is less abusive towards fashion victims: a black dress with leather appliques is £39.99 and €49.95 in the UK and Austria respectively. This is pretty much accurate to the exchange rate. It seems to be one of ZARA’s policies to just take 10 off the price. A TRF Shirt is €39.95 in Austria and £29.99 (€37.49), which actually makes it cheaper in the UK than in Austria.

 

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