Inflation is only part of the story behind the slump in clothing sales, analysts say.
When was the last time you bought a new sweater, shoes, or little black dress? For many people, these shopping and online ordering are much less frequent than they were a few years ago.
Customers are significantly less willing to spend on apparel, according to a new research note from investment research firm UBS.
As first reported by Retail Dive, analysts found that customer interest in spending on “apparel, footwear and accessories” has fallen 15.7%, with markets in these categories outperforming others in growth since at least 2016. We calculated that we were lagging behind the category.
Even among the highest income brackets, 13.3% said they were unwilling to pay for this category of spending.
“U.S. consumers are postponing apparel purchases at a much higher rate than they were a year ago,” wrote Jay Sole, who led the UBS report. “[They] I plan to buy sales more often, buy more store-branded products, shop less, and shop closer to home. ”
This is why we’re all spending less on clothes
Inflation is often used as an umbrella term to blame for everything, but rising clothing prices aren’t the biggest or most direct reason why people are changing how they shop. The consumer price index rose 7.1% in November, but the apparel category he rose only 3.6%. This is well below grocery, for example, which jumped a whopping 12% for him.
Of course, the direct cost of clothing isn’t the only factor to consider when it comes to purchasing power. With more money spent on things like food and electricity, less money spent on other things, many people start saving on non-essentials. Sort categories by procrastinating buying new shoes.
A survey conducted earlier this year by insurer Breeze found that 88% of customers have cut spending in some way and 63% have cut back on consumer spending (a broad range of categories including clothing) amid rising inflation. I understand.
The pandemic-related rise of working from home has also drastically changed the amount of money people spend on business casual suits and blouses, loosening what is considered appropriate to wear to the office, even as offices reopen.
Because the numbers reflect averages, some people have found themselves overestimating how much they’ll spend later this year after buying new post-pandemic clothing.
It may be time for the used clothing market to shine
Sole and UBS’s team of analysts said, “U.S. consumers are increasingly arguing that their spending philosophy is ‘live for today’ because tomorrow is so uncertain.”[…] Taking a step back, this trend is concerning as spending could drop significantly if consumer cash flow slows or credit becomes unavailable or less affordable. . ”
At the same time, the market for pre-owned versions of designer items, in particular, remains very strong. A study by luxury watchmaker Chrono 24 found 23,939 pre-owned Gucci watches resold on eBay. (Ebay) – Get Free Report 3 months until September.
EssilorLuxottica was the next most popular item to buy second hand (Esrov) Mr. Ray-Ban glasses. Most pairs cost less than $200, but over the same period he had over 19,699 used pairs and other items sold on his eBay.
The company has calculated that the global used and resale market will be worth $96 billion in 2021. That number is expected to rise to $218 billion by 2026.