Dive Brief:
- Apparel, accessories and footwear spending fell 2% in January and February, lagging behind overall spending in the U.S., according to a report from Consumer Edge released Tuesday.
- Luxury spending fell 7% during the period, which the report said was on par with 2024’s 8% decline in the sector. Spending at department stores increased 2%.
- Within the apparel, accessories and footwear segment, fast fashion and the combined category of consignment and thrift saw the highest growth during the period, with both categories seeing spending increase by 5% compared to the same period last year.
Dive Insight:
Consumer Edge gathered the sales transaction data from more than 40 million active U.S. credit and debit cards, according to a company spokesperson.
The report found that customer spending on sports footwear and athletic apparel fell 6% compared to the same period last year. Strong performances from newer brands including Alo Yoga, Vuori and On Running “failed to compensate for ongoing softness among traditional sportswear brands,” the report said.
Multi-brand luxury platforms fell 22% in the period compared to last year. However, the report found that MyTheresa and Farfetch gained share among wealthier shoppers and proved more resilient than Net-A-Porter and Ssense, per the report.
Single-brand luxury fell 6% compared to last year, which Consumer Edge said was despite positive performance from midlevel brands such as Coach and Ralph Lauren. Customers pulled back their spending at higher-end brands including Chanel and Christian Dior for the second year in a row, which Consumer Edge said could be attributed to a potential protest against price hikes and limited product innovation.
Among high-income shoppers, Louis Vuitton and Cartier increased their share of spending while Gucci saw the worst share losses, per the report.
The report also broke down spending by age group, which a Consumer Edge spokesperson said was based on a subset of its larger data panel.
While all age groups reduced spending on apparel, accessories and footwear, consumers aged 25 to 34 cut back by 6.2% — the most over the last 12 months. Spending among people aged 18 to 24 declined the least, at 1.8%, per the report.
Consumers older than 65 cut their spending by 4.5%. Report authors said this was an important segment of the market, because this group has more disposable income and includes more people reaching retirement age.
Meanwhile, those aged 35 to 44 decreased their spending 4%; people aged 45 to 54 decreased spending 5%; and those aged 55 to 64 decreased spending 3.8%.
“Understanding these dynamics will be crucial for companies looking to drive growth, adapt to evolving consumer demands, and stay ahead in a shifting retail environment,” report authors wrote.
