Sales are not what they used to be In Milan, 25 percent of spending on the first day of sales comes from tourists

On Saturday, July 5th, the sales started in Italy—a crucial moment for retailers, as well as an opportunity to take stock of the country's economy. Early estimates in Milan recorded an average receipt of about 130 euros during the first weekend of sales, with an average regional expenditure in Lombardy of 203 euros per household, while on a national level, estimates from Confcommercio expect a total turnover of 3.3 billion euros. Federazione Moda Italia has raised the bar even further, estimating a total expenditure of 5.6 billion, of which 2.3 billion come from foreign tourists. Despite rising clothing prices, budgets for the sales period haven’t increased, and according to a survey by Ipsos for Confesercenti, cited by Il Sole 24Ore, only 62% of Italians have decided to buy, and about a third will decide based on the offers. Only 7% of Italians plan to spend over 300 euros during the summer sales, while most of the population will stay under 100 euros. The main complaint shared by all consumers this summer seems to be the cost of discounted items: in a video report by Ala News, many interviewees complain about still too high prices. The content shows that those who spend are stockpiling for the entire coming year. Often, the sales represent the only chance to buy new clothes—a statistic that signals a growing tension between the cost of clothing and what Italians can afford in an economic context where purchasing power has significantly worsened.

The effects of Italy’s purchasing crisis were already felt on the first day of sales: according to what was reported by MilanoToday, in Milan a quarter of sales on the first day came from tourists, and the erosion of Italians’ real spending power also impacted a traditionally elastic sector like clothing. According to the latest report from Istat for 2023, released last October, the average monthly household expenditure in Italy was 2,738 euros, but fixed expenses accounted for 60% of that. Clothing and footwear overall accounted for only 4.5%, showing a progressive marginalization of the sector within household budgets. Although precise data on price increases in this sector is lacking—due to the wide range of product categories—price increases are easily observable: beyond luxury fashion, which doesn’t have official sales (only unofficial ones, which don't count here), one can take the example of fast fashion brand Zara, which, according to Soldoutservice, has increased prices by 19% for certain categories over the past three years, with average prices up 11%—not including the “elevated” capsules launched by the brand in the past year, which are much pricier than the basic line. These increases reflect the rising cost of raw materials and transportation in a context of generalized inflation, showing that it's not only mid-to-high-end fashion that's become less accessible.

The average net monthly salary in Italy in 2024 ranged between 1,700 and 1,850 euros, slightly improved from before but insufficient to keep up with the cost of living. The sales, rather than an opportunity, have become a necessity for both retailers and buyers, in a scenario worsened over the past year due to increasing price volatility. Many items are released on the market already with increased prices, only to be discounted by up to 50% or 70% during seasonal sales—a practice known in the sector as "planned discount markup." Meanwhile, the low-cost clothing offering has declined in quality. Many fast fashion brands, while maintaining competitive price ranges, have reduced volumes, streamlined collections, and increased prices on basic lines. The result is more uniformity, less variety, and often lower quality even at the entry level. For many, sales can no longer be seen as traditional promotional tools; instead, they’ve become a temporary way to access goods that, under normal market conditions, are increasingly unaffordable—even for basic items like jeans, t-shirts, and sneakers. Thus, sales are no longer a time to indulge in a luxury at half-price, but the only time of year when buying clothing is compatible with the average family budget. In a context of stagnant purchasing power and rising prices, even a T-shirt discounted by 30% becomes a social indicator.