Fashion retailers are raising prices and scaling back discounts to make up for lost sales in 2020, and to offset rising supply chain costs.

According to the Department of Labor's June Consumer Price Index, apparel prices rose by 4.9 per cent in June versus the year before - the largest jump in a decade. Crocs, Michael Kors, and Ralph Lauren are among those brands that have already raised prices.

The supply chain crisis is driving up the cost of transporting goods, and leading to long delays. At the same time, retailers are trying to find workers in a tight labor market, and are raising wages or offering perks to attract talent. Ralph Lauren has been raising prices and cutting discounts since 2019. In its most recent quarter, its average selling prices have increased by 17 per cent.

Crocs has raised s average selling price by 8 per cent to $21.84, in the most recent quarter, and it is planning more price hikes in 2022, mostly for customers in Asia.

LVMH-owned Louis Vuitton has raised the prices of its Pochette Accessoires Monogram Canvas handbags by 25 per cent this year, from $630 to $790.

Chanel has hiked the prices of its handbags to offset missed sales in 2020. According to a note from Jefferies analysts, average global prices of its handbags went up as much as 17 per cent at the start of July.

John Idol, CEO, Capri, the retail giant behind Michael Kors and Jimmy Choo, said that prices at Michael Kors had already gone up and will go up "considerably" next spring.