Uniqlo has abandoned plans to raise the price of its popular 290-yen ($2.35) socks, highlighting the difficulties Japanese retailers face as inflation tightens household budgets. Earlier in October, the Fast Retailing Co-owned brand announced broad price hikes for its clothing products due to rising input costs. However, less than two weeks later, it reversed a decision to increase the price of its socks by 100 yen and eliminate discounts on bulk purchases.
The reversal came after a wave of criticism on social media from shoppers frustrated by higher prices. One user on X expressed frustration, saying, “I work full time, do the housework and raise my kids. What more am I supposed to do?” Others rushed to stock up before the new prices took effect.
A Fast Retailing spokesperson explained, “As socks are an essential everyday item, in Japan we reconsidered our planned price revision.” The move underscores the challenge retailers face in passing rising costs to consumers after decades of deflation, which conditioned shoppers to expect stable prices.
Consumer prices, excluding fresh food and other items, climbed 3.2% in September from a year earlier, while household spending is shrinking. Atsushi Takeda, chief economist at Itochu Research Institute, noted that the decision to drop the price hike reflects consumers’ resistance to higher prices, affecting not just lower-income consumers but also those higher up the income scale.