Apparel Sales Experience Holiday Boom

Economic concerns over the last few years have prevented some consumers from spending more than absolutely necessary on clothes, and the apparel industry has been suffering for it. This season, though, whether due to the current state of the economy or a little bit of Christmas magic, the apparel industry experienced its largest uptick in the last eight years.

According to data from Mastercard SpendingPulse, apparel sales increased by 7.9% between November 1st and December 24th. That’s an explosion compared to last year’s holiday apparel boost of just 2.7%. Neil Saunders, managing director of GlobalData Retail, believes there are three major factors contributing to this sudden hunger for clothing. First, consumers are more willing to splurge on themselves than in years prior. Second, the more intense winters of the last few years have necessitated newer and better winter clothes. Third, retailers are keeping a better handle on their inventories, which means less clearance sales. GlobalData Retail also performed a survey of 2,000 consumers, and found that 68% of people spent more on clothing for themselves than they did this time last year.

Strong apparel spending is a good indicator of a consumer republic’s confidence in their economy. Clothes, after all, are often the first thing to go when money is tight. It might have just been the holiday frenzy, but customers felt empowered to safely purchase clothes for the first time in quite a while.

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5 years ago
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