CONSUMER EDGE REPORTS THREE PERCENT DECLINE IN U.S. CONSUMER SPENDING ON APPAREL

Consumer Edge, a provider of global consumer data-driven insights, released its 2024 Apparel, Accessories and Footwear Report, revealing a three per cent decline year-over-year in U.S. consumer spending last year. Rising economic pressures, shifting consumer preferences favoring affordability and sustainability, and a resurgence in in-person shopping reshaped the market landscape during this period.

Middle-income earners faced the sharpest spending cuts, with their purchases down more than other income groups. Against this backdrop, footwear and athletic apparel categories experienced significant declines, with spending falling six per cent as established brands like Nike and Adidas struggled to maintain growth. Emerging brands like Hoka and Alo Yoga, however, gained market share.

The luxury sector also saw pronounced challenges among both single-brand houses and multi-brand platforms, where spending dropped sharply as middle-income consumers turned toward more affordable alternatives. In contrast, resale platforms, including Depop and Vinted, recorded a one per cent year-over-year increase, reflecting growing consumer interest in sustainability and cost-effective shopping options.

“Despite broader spending declines, brands implementing affordability, sustainability and direct consumer engagement are winning consumer loyalty,” said Michael Gunther, Vice President and Head of Insights at Consumer Edge. “Navigating these evolving trends will be essential for companies aiming to adapt and excel in the coming year.”

The report also reveals how some luxury brands have lost their luster, the resurgence of brick-and-mortar, competition in fast fashion and how direct-to-consumer brands stay afloat. With an eye toward 2025, momentum is building among resale and fast fashion retail. Resale platforms Grailed and Depop are experiencing strong growth, and fast fashion began to recover in Q4 2024.

Consumer Edge’s full Apparel, Accessories and Footwear Digest can be read here.