Consumers Are Buying Less Apparel – but Paying More
May 17, 2026
Apparel retailing in mid-May 2026 is being shaped by cautious consumers, rising prices, and widening divides between income groups
E-Commerce
On January 19th $8 billion in e-commerce sales could be looking for a new platform. That’s if the impending ban on TikTok in the United States comes into effect as planned.
In 2024, spending on TikTok Shop in the U.S. during January-November reached $6.5 billion. Full-year spending should exceed $8 billion, according to TabCut data.
The potential ban poses a serious threat, particularly for small and medium-sized enterprises (SMEs) that leverage TikTok for marketing and sales.
However, it could be a windfall for competing social media and ecommerce platforms that would be eager to pick TikTok Shop’s business.
The question is, which platform is likely to be next in line, if TikTok Shop is shut down?
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Markets
Apparel retailing in mid-May 2026 is being shaped by cautious consumers, rising prices, and widening divides between income groups
Brands are continuing to show margin pressure as costs increase.
Softening confidence and higher costs are driving more cautious, value-focused behavior – forcing brands to plan for flatter, less predictable demand.
U.S. demand remains relatively resilient, is facing headwinds, while EU growth has softened
Disciplined inventory control, a capital-light platform and margin-first retailing are helping Next outperform rivals in a difficult apparel market.
Brands wrapped up 2025 with stronger-than-expected earnings. However there are serious concerns heading into 2026.
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