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
MARKETS
Solid consumer spending and a resilient labor will continue to prop up the economy in the coming year, economists at Goldman Sachs said in a year-ahead forecast.
However many people from industry are less confident.
Please login to continue reading
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.
© 2026-27 Inside Fashion Ltd.