Inflation Might Be Cooling Down, But Apparel Shoppers Are Still Tightening Up – Gifts & Decorative Accessories

Despite cooling inflation, U.S. consumers are flocking to budget-friendly fashion.

“New data reveals a significant trend of U.S. shoppers gravitating towards sales and lower-priced brands in apparel, and shopping on a budget,” said Kristen Classi-Zummo, apparel industry analyst at Circana.

Here are some ways Circana says this budget behavior is manifesting at retail:

• According to a Circana survey, 83 percent of U.S. consumers feel that prices are too high and 35 percent of consumers are putting off buying apparel due to overall higher prices.
• Thrift shopping has tripled since 2019.
• Consumer emphasis on value and need-based spending continued even through traditional retail milestones like the back-to-school season. In August, unit sales of apparel declined by -3 percent, compared to the same period last year.

In a previous September 2024 report, Circana reported a decline in apparel sales for the back-to-school shopping season. Though there was a 4 percent increase in unit sales of leisure footwear during the four weeks ending August 31, 2024, unit sales of apparel declined 3 percent compared to last year. In its report, Circana wrote: “America’s casualization has depleted the importance of back-to-school shopping for fashion.”

“Consumers are buying the same amount of product, but they are spending less, and that spending is aligned with current needs,” said Marshal Cohen, chief retail industry advisor for Circana.

While school necessities, like leisure footwear, portable beverageware, computers, tablets, and e-readers, were among the categories that rose to the top of the shopping list, innovation was a common thread across all of the fastest-growing discretionary general merchandise categories in August. Prestige beauty — namely hair, fragrance, and skincare — and toy building sets rounded out the top performers for the month, making it clear that innovations in design, functionality, and marketing are key to attracting consumers to spend outside their immediate need considerations.

“Consumers may be waiting for the weather to shift to buy what they need for changing temperatures, but with the right product or product message, marketers still can inspire desire-based purchases,” added Cohen. “Growth opportunities lie in wait for marketers prepared to grab them at a new time, or with a new approach, diminishing the role of traditional shopping seasons and indicators. Lackluster back-to-school spending no longer signals soft holiday spending to follow; instead, there may be lingering benefits of pent-up demand.”

See Also From GDA:

>