Clothes 30 percent more expensive in Switzerland "The price difference shows how shameless the stores are"
The Arket clothing store hides its lower euro prices. A study shows that Swiss customers pay up to 60 percent more for the same items of clothing. Experts criticize this pricing policy.
No time? blue News summarizes for you
- The clothing store Arket in Zurich hides the lower euro prices on its labels.
- The reason for this: You pay a lot more for clothes in Switzerland.
- Experts criticize Arket's approach as a shameless exploitation of the higher purchasing power in Switzerland.
The Swedish clothing store Arket has been located on Zurich's Bahnhofstrasse since last December. Its concept: sustainable and timeless clothes in Scandinavian style.
H&M is just a few meters away. The main focus here is on fast-moving trends. But the stores still have one thing in common: together with COS, Weekday and & Other Stories, they belong to the same company.
The prices vary greatly. Weekday and H&M are slightly cheaper, while COS, & Other Stories and Arket are in the mid-range segment.
Arket sticks to euro prices
A white fur jacket costs 299 francs at Arket. In euros, however, it costs 199, the equivalent of 187 francs. That's quite a big price difference. But it's not that easy to tell: The clothes store has stuck a sticker over the euro price. They do this with all their clothes.
Another example: the price tag on the white knitted sweater shows the price in Swiss francs, Norwegian kroner and Polish zloty. However, the right-hand section is again covered by a sticker. If you remove this, the euro price is revealed.
Now you can see the clear price difference: the sweater costs 129 Swiss francs, or 89 euros. A price difference of 40 francs.
blue News also takes a look at Weekday, COS, H&M and & Other Stories. Weekday doesn't label the different currencies, the price difference is clearly visible at first glance. The prices in Switzerland are slightly higher here than abroad, but not as high as at Arket, for example.
At the clothing store & Other Stories, only the Swiss price is displayed. Its jewelry, on the other hand, also shows other currencies - not taped down.
Swiss citizens often pay 30 percent more than EU citizens
Jean-Claude Frick is a digital expert at Comparis. He explains that retailers in Switzerland are legally obliged to display prices clearly.
However: "There is no obligation to disclose that identical items of clothing often cost 30 percent or more less in the EU than in Switzerland," says Frick. This poses challenges for Swiss retailers, as many goods are imported from abroad and are already labeled with prices for various European countries.
"Some stores try to hide the cheaper EU prices on the labels to make the price difference less obvious. This approach happens time and again, even with online retailers," says Frick.
André Bähler, Head of Politics and Economics at Consumer Protection, also explains to blue News: "Covering up labels prevents price transparency, but is not prohibited." Companies that maintain their own stores in Switzerland have certain additional costs, for example due to higher rents.
"The price difference shows how shameless certain companies are"
Frick also concedes that companies with higher fixed costs such as staff and rent in Switzerland can justify a certain price premium. However, he emphasizes: "The price difference shows how shameless certain companies are. There is absolutely no reason to increase the price so massively."
In addition to the higher fixed costs, purchasing power in Switzerland also plays a role: "It's also simply a matter of siphoning off Switzerland's higher purchasing power." This means that companies take advantage of the stronger economic power and higher income levels in Switzerland to raise their prices above the necessary level and thus achieve higher profits.
"Prices are adjusted to the price level in the individual markets"
When asked by blue News, Arket writes: "Pricing can vary from market to market and is influenced by a number of factors and local conditions."
The aim is to offer the best mix of fashion, quality and sustainability at the lowest possible price. "To achieve this, our prices are adjusted to the respective price level in the individual markets, taking into account taxes, general cost structures and other external variables."
When asked why they tape off their price tags, they don't want to answer. blue News also asks Weekday. Their answer is exactly the same as Arket's.
Geoblocking ban offers Swiss people more leeway
However, the Swiss do not have to tolerate the higher prices. Since the introduction of the geo-blocking ban in 2018, there has been more room for maneuver.
Consumers in the EU can now shop online on any European website, regardless of their nationality, place of residence or place of establishment. "A foreign provider does not have to deliver its goods to Switzerland, but may not refuse delivery abroad," says Bähler.
This means that customers from Switzerland can have the goods sent to a German delivery address near the border, for example, and collect them there or have them forwarded by a corresponding provider. "With large price differences, this effort quickly pays off," says Bähler.
