The Situation in October

The outlook for Holiday 2023 remains somewhere between ‘cautious’ and ‘pessimistic’ for retail as a whole, and for apparel in particular.

Realistically, most fashion retailers have not done enough to win in a market where competition for consumer discretionary spending is fierce.  The ‘buying for the sake of buying’ that previously helped drive sales of all brands is being replaced by much more thoughtful purchasing.  

Budget consumers have less disposable income due to inflation, while more affluent consumers are leaning into ‘fewer but better’.  

And then there’s retail experience.  Stores that have invested in everything from store design to staffing will have a clear advantage over those banking promotions to drive sales.  Particularly now when consumers are prioritizing ‘value’ over ‘quantity’.