According to the NPD Group, fourth-quarter apparel sales will decline in the U.S., with average prices rising 2 percent and dollar sales falling one percent.
“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, NPD Group. “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.”
NPD’s Future of Apparel report found that consumers “increasingly plan to buy apparel tailored to a specific need.” The company forecasts sales of sweatshirts, outerwear and dresses to grow in the fourth quarter versus 2021. “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.
With being more selective in their purchases, NPD said consumers are invoking cost-saving measures. Last quarter, “41 percent 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, NPD found that nearly 45 percent of consumers bought apparel on a resale platform in the third quarter, rising 2 points since the first quarter.”
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