A Modest Decline Forecasted for Fourth Quarter Apparel Sales, as US Consumers Look to Stretch Their Budgets, Reports NPD
Sweatshirts, outerwear, and dresses expected to be bright spots in the fourth quarter, spurred by replacement needs and a return to in-person events
PORT WASHINGTON, N.Y., Oct. 24, 2022 /PRNewswire-PRWeb/ -- Amid consumers' financial concerns and economic uncertainties heading into the holiday season, fourth-quarter apparel industry sales are expected to decline in the U.S. With average prices forecasted to rise 2%, dollar sales are projected to fall by 1%, according to The NPD Group.
"As brands and retailers kicked off holiday promotions before Halloween costumes were purchased, we can expect an elongated holiday selling season for the apparel industry," said Maria Rugolo, apparel industry analyst at NPD. "In the face of rising prices, the fourth quarter will be a balancing act as shoppers prioritize the areas where they will trade down, pull back, or invest, causing them to be more prudent in their apparel spending."
The most recent "Future of Apparel" report from NPD found that consumers increasingly plan to buy apparel tailored to a specific need. Sales of sweatshirts, outerwear, and dresses are expected to grow in the fourth quarter, versus last year. "Wardrobe needs, stemming from replacement or replenishment purchases and a return to social gatherings, will prompt consumers to invest in certain aspects of their wardrobe this holiday season," said Rugolo.
Along with being more selective in their purchases, many consumers are invoking cost-saving measures. Last quarter, 41% of consumers reported that they had to forgo buying apparel to purchase products in another category – an increase of 5 points since the beginning of the year. Consumers also said "lower prices" were the most important factor for their future apparel purchase decisions. Exploring alternative buying options, nearly 45% of consumers bought apparel on a resale platform in the third quarter, rising 2 points since the first quarter.
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About The NPD Group
NPD is a global market information company offering data, industry expertise, and prescriptive analytics to help our clients understand today's retail landscape and prepare for the future. Over 2,000 companies worldwide rely on us to help them measure, predict, and improve performance across all channels, including brick-and-mortar, e-commerce, and B2B. We have services in 21 countries worldwide, with operations spanning the Americas, Europe, and APAC. Practice areas include apparel, appliances, automotive, beauty, books, B2B technology, consumer technology, e-commerce, fashion accessories, food consumption, foodservice, footwear, home, home improvement, juvenile products, media entertainment, mobile, office supplies, retail, sports, toys, and video games. For more information, visit npd.com. Follow us on Twitter: @npdgroup.
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SOURCE The NPD Group
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