The report shows that while total consumer spending in the sector decreased modestly up to 30 November 2025, Gen Z consumers aged 18 to 24 reduced their spending less than any other age group.
Brands favoured by this demographic include Coach, Béis, Depop, and Shein, indicating a preference for labels that combine affordability with trend-driven appeal.
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Consumer Edge’s analysis found that value-driven brands expanded their share of the market despite the overall decline in category spending.
This trend was evident across income segments with higher-income shoppers also shifting their purchases towards brands such as Quince, Depop, Nordstrom Rack, and Alo Yoga.
The data suggests that factors beyond income are now influencing purchasing decisions.
Resale platforms and off-price retailers continued to perform well during the period. Year-over-year growth was recorded for consignment and thrift platforms such as Depop, Poshmark and The RealReal.
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By GlobalDataAt the same time, off-price department stores including T.J. Maxx, Ross and Nordstrom Rack gained ground over traditional department store competitors.
Among millennials aged 25 to 34, sharper pullbacks in spending were observed, yet practical and value-led brands like Quince, Uniqlo, Buck Mason, and Depop managed to attract more spending from this group.
The report also notes ongoing weakness in footwear and athletic apparel sales with established players losing share while newer trend-focused brands captured share.
Luxury spending presented a mixed picture. Cartier reported gains as a single-brand luxury house in contrast to losses for Gucci and Louis Vuitton.
Multi-brand luxury retailers showed divergent results with Mytheresa and Net-a-Porter increasing their share while SSENSE saw declines following its bankruptcy protection filing.
Consumer Edge vice president and insights head Michael Gunther said: “What’s striking is that income alone is no longer a reliable predictor of apparel spending behaviour. Even higher-income consumers are becoming more selective, shifting spend toward brands that offer a clear value proposition – whether that’s quality, pricing, relevance or brand affinity. As we enter 2026, brands with a clearly defined customer and brand message will have an advantage over those taking a broad, one-size-fits-all approach.”
