“Somehow we’ve flown under the radar, but we are a highly profitable business that is growing fast," … [+] Courtesy of Windsor The coming year looks to be another challenging one in fashion retail. Year-over-year, women’s specialty fashion retailers grew only 3.8% through November, basically keeping pace with inflation which was running 3.9% at year-end in women’s fashion. “This year will bear challenges for apparel companies, like other discretionary product categories, arising from a mild recession in the U.S. and weaker economic prospects in many parts of the world,” S&P Global reported in an outlook across a wide range of consumer product categories. “Apparel companies will likely resort to promotional pricing to drive sales and clear excess inventory.” The inevitable result of which is to put pressure on profits. However, there is one bright spot for fashion retailers: dressing people for the things they are dying to do after being held hostage at home due to the pandemic. “When consumers emerged from the pandemic, they eagerly exchanged their sweatpants for dressier attire. We have seen apparel manufacturers and retailers who cater to occasion-wear benefit from consumers’ pent-up demand for in-person activities, including special events and travel,” shared Sarah Wyeth, […]
