I seldom post but have been reading a lot of ylf for about five years. This thread has brought me out of lurking as I believe that several important factors around clothing prices have not been discussed.
First, I think that the cost of real estate has been a major factor in the US and probably abroad as well. A decade ago you could reliably buy sturdy basics from places like the Gap or llbean. Now those merchants are almost complete garbage imho. Whereas ten years ago Target clothing was mostly junk. Now a days Target clothes are cheaper and better than Gap and often not worse than llbean. But because they are not in fancy malls and don't have nearly the same high cost per square foot as those types of retailers, they can focus on quality. With Target in particular, I think that the choice is often whether to buy today while picking up groceries and other things or whether to make a clothing specific visit, and I think people do some of each. A lot of places respond to this real estate cost by cheaper components rather than higher prices. So to me, sales at Gap or llbean just aren't a compelling reason for shopping there any more.
However, I recently did purchase a lovely lambswool ultra thick men's sweater from llbean. It was in the super sales bin, but I would have bought it for full price too. But men's small is often left over, so that is a good trick to know for some items. So I am not sure to what extent any of these things we have been discussing apply as much for men's clothing.
Anyway, my point above is that real estate is a higher percentage of the cost for retail stores than it was previously, and playing games with prices is one way that merchants are trying to adjust.
I've seen supporting arguments that, as a result, retailers get better margins online than b&m now. Which brings me to my next factor, online shopping. It has hugely increased costs related to returns. So I think that the top of the season price assumes that some people are going to snap up inventory, hold it for a month or two, and then return it. And they still need to keep the stores well stocked at the same time. So hence the high opening price.
Conversely, retailers know that if the item is 40 % off, then more people will decide that it's worth the price tag and keep the item. This just happened to me. I bought a Talbots T-shirt online for 20 dollars marked down from 50. I felt like wearing it on the day after it arrived. Upon sober reflection, I realized that while it fits well through my big shoulders and chest, it is boxier through the middle than it appeared on the model (they must have pinned the back). If I were spending 50 dollars for it, it would need to be a work shirt and I would have returned it for something else more fitted, but for 20 it was still far nicer than any of my $7 dollar Target weekend tops.
So another point is that very often the sale price versus the full price determine the function of the garment in my wardrobe.
My last point for this moment pertains to returns. I pretty much refuse to shop at Nordstrom for anything besides shoes in special sizes (very small calf for boots). I feel like most of the sticker price there is for coverage of the cost of other people's returns. For anything short of ultra fancy items (say $150 and up) I actually have experienced the quality to be mostly comparable to much cheaper retailers.
I am decisive once I have gotten past the cash register so I enjoy Forever 21 prices. Since they only have a 21 days return period, and only for store credit. I actually think that the tremendous reduction in returned items makes them more environmentally friendly than most places: if you think about packaging and transportation costs in the equation. And furthermore, as a careful laundering expert, I have no issues with the longevity of the clothing, at least compared to anything else in the under $150 range.
As far as sales, I think that the most rational strategy is to care about the intersection of time and price. For example, I was recently trying to buy some shorts at Lands End. They didn't fit me well in a variety of styles that I tried. While I was there I found a replacement for ten year old fleece half-zip for $10. I was not looking for that category but it seemed worthwhile to get something newer and thus warmer because it hadn't stretched out. On the other hand, there was also a replacement for a ten year old cotton sweater. It was only slightly discounted, at about $65. Since I hadn't seen an equivalent replacement in a decade, there was no way I was going to wait for a better discount. I even checked their website when I got home and they weren't carrying this print online. This only confirmed my resolve to keep it.
So I shop sales, but only in terms of what happens to be in front of me when I out. Online, I look for sales primarily on dresses, because I find them to be the most hewi for me. And I have a harder time predicting workhorse items from closet orphans when it comes to dresses, so I am cautious about spending over $100 on a dress.