Are Clothing Sales in Trouble?

Featured Image

First Insight documented a shift underway in consumer spending. Nearly all consumers, or 97 percent, are rejiggering their spending in order to afford groceries, gas, housing, and healthcare, their four biggest priorities, according to the product decision platform’s “The State of Consumer Spending: Inflation Impacting Consumer Confidence report. The majority (82 percent) are sniffing out sales and promotions, while 40 percent say they’re sticking to a budget and 28 percent are buying less.

Clothes-shopping consumers pushed apparel sales up in April, according to Mastercard SpendingPulse data, but inflation is doing its best to crash the retail party.

Mastercard said that April’s clothing sales rose 10.8 percent year-over-year, while department stores were up 15.7 percent year-over-year, aligning with Afterpay data showing that sales in the channel during its bi-annual Afterpay Day “holiday” surged 261 percent from autumn. However, Mastercard’s credit card intel suggests the growth rates for apparel and department stores “have started to soften from the peaks earlier this year.”

Sales in furniture and furnishing rose 3.8 percent year-over-year for the seventh consecutive month of positive growth. “While the super-hot housing market is starting to show signs of cooling, consumers continue investing in their homes and feathering their nests for seasons to come,” Mastercard said.

Total unadjusted retail sales excluding automobiles rose 7.2 percent from the year before as in-store sales perked up 10.0 percent, while Afterpay’s March data found physical-store sales leaped 91 percent, “nearly doubling from August.” The opposite is true for digital sales, according to Mastercard, which documented a 1.8 percent year-on-year decline in e-commerce, which is still 92 percent above where it was in April 2019. Store sales were strongest in California, New York, Florida, Nevada and Illinois, Mastercard said.

“Whether for a family barbeque, returning to the office or senior prom, it seems like everyone is out shopping for something,” said Steve Sadove, senior advisor for Mastercard and former Saks Inc. chairman and CEO.

Other indicators suggest inflation is making consumers think twice about spending.

First-time U.S. unemployment benefits claims for the week ended April 30 rose by 19,000 to 200,000,  the Department of Labor reported Thursday, for the biggest first-time filer uptick since mid-February and biggest weekly bump in claims since July last year. Meanwhile, ADP’s April National Employment Report showed private sector employment rose by a seasonally adjusted 247,000 from March to April, a sharp slowdown from 479,000 in March, 601,000 in February, and 512,000 in January.

READ THE FULL ARTICLEat Sourcing Journal (subscription required) or download below. 

retail  consumer spending  inflation

Download the full article

The Supply Chain Disruption
The Wharton Baker Retailing Center

What Retail Executives Say About Supply Chain Disruption: Shortages, Pricing and Delays

We partnered with The Wharton Baker Retailing Center to create a comprehensive infographic exploring our findings.

View the Infographic
The State Of Consumer Spending
The State Of Consumer Spending

The State Of Consumer Spending: Gen Z Influencing All Generations To Make Sustainability-First Purchasing Decisions

We partnered with The Wharton Baker Retailing Center and asked consumers in the U.S. how sustainable practices are impacting shopping habits and purchase decisions.

Read the Report
InsightSuite for Small Business
Featured Product

InsightSuite for Small Business

Specialized Tools for Small & Emerging Businesses

The fastest and most cost effective way to increase sales, profits and sell-in for growing businesses and digitally native brands.

Learn more
Maximize Value, Speed and Profit
Free Ebook

Maximize Value, Speed & Profit

Learn how to leverage Voice of the Customer Analytics and 3D Product Creation to make more profitable products, faster.

Get the Free E-book
Kohl's Creates Value W/Predictive Analytics
Roundtable Video

Kohl's Creates Value W/Predictive Analytics

Learn How First Insight's Predictive Tools Fuel Kohl's Success

As one of the world's leading omnichannel retailers with more than 1,100 stores in 49 states, Kohl's is leveraging First Insight's predictive analytics solution and voice-of-the-customer data to improve their business.

Watch the Webinar
FDRA Consumer Sustainability Survey

Consumer Sustainability Survey 2021

The First Industry-Wide Consumer Study On Shoe Sustainability

This industry-wide survey aims to create a critical baseline that brands and retailers can use to ensure they understand what consumers actually comprehend, what terms and phrases resonate best, and what areas they should prioritize.

Download the Webinar & Findings
Navigating Disruption
Supply Chain & Pricing

Navigating Disruption

How The Rockport Company is Optimizing Assortments and Pricing with Data + Digital Product Testing

Learn how The Rockport Company created a new product playbook powered by the Voice of the Customer and predictive tools.

View the Webinar & Highlights
Case Study


While the Covid-19 pandemic hit most retailers hard, it created uniquely intense challenges for Hotter Shoes. Hotter needed to build up its e-commerce presence and appeal to a new group of shoppers at the same time.

Read the Case Study