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August 22, 2022

WEEK IN REVIEW: Clothing spend dips as cost-conscious consumer emerges

The global economic climate is becoming more strained by the day and is certainly being felt by apparel brands and retailers as buying clothes becomes less of a priority for consumers.

By Hannah Abdulla

With energy and fuel costs rising and inflation at an all-time high, clothing spend is falling according to new figures from retail trade organisations across the UK and US.

And that’s set to worsen. Despite the UK experiencing record temperatures over the last month which fuelled summer clothing sales, industry onlookers have called it the “last hurrah”, warning things are set to take a sharp turn.

Globally, brands will no doubt feel the effect of supply chain challenges in the coming weeks as China doubles down on its zero-Covid policy, which continues to shut garment factories and limit people’s movements as it aims to curb the spread of the virus.

Cutting back on ‘nice to haves’ and trading down to cheaper alternatives are already coming into play for the more cost-conscious consumer.

Meanwhile, more brands are exploring ways to expand into rental and resale in the hope of engaging with those consumers that are increasingly seeking value from their purchases.

UK online clothing sales wane as cost of living bites
UK retail sales volumes rose by 0.3% in July and were 2.3% above their pre-coronavirus February 2020 levels, but demand for clothing waned as the cost of living restricted wallet spend on ‘nice-to-haves’.
US consumers still shopping despite inflation but clothing not priority
US consumers are continuing to shop despite high inflation but failing to prioritise wallet spend on clothing, new figures show.
Financial loss, disruption for apparel under China zero-Covid policy
China is pressing forth with its zero-Covid policy despite it leading to an economic slowdown and global fashion brands are reeling from the effects.
Zalando outlets to offer pre-owned apparel
German fashion e-tailer Zalando says its outlet stores will expand their range to include pre-owned fashion to give garments a second life.

Key drivers for growth in the global online apparel market
ABG agrees GBP211m deal to acquire Ted Baker
Frasers Group makes play for MySale to expand Australasia presence
Interview: Arise IIP’s vision for West Africa textile and apparel sourcing
Joules sounds profit warning on dampened consumer confidence
New US inland port to ease supply chain congestion
China to clampdown on forced labour with new ILO commitments
JAAF welcomes call to action on Sri Lanka’s economic crisis

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