Apparel Wholesalers NAICS 424350

Sep 30, 2025 - Apparel Industry Shifts Toward Full-Price Sales Strategy

• According to a Reuters report, US clothing retailers such as Levi’s, Aritzia, and Ralph Lauren are testing full-price strategies amid resilient demand from affluent consumers, who remain largely unaffected by inflation and tariffs. With the wealthiest 10% of Americans now accounting for half of all consumer spending, brands are seeing minimal pushback on higher prices and are reducing reliance on promotions. For the apparel wholesale industry, the shift signals a potential rebalancing of inventory and pricing strategies. Wholesalers may need to prioritize premium product lines, streamline discounting cycles, and align with retailers’ data-driven, region-specific pricing models. The trend also suggests stronger demand forecasting and tighter supply chain coordination to support full-price positioning and margin preservation.
• US consumer mood indicators have weakened, signaling potential headwinds for spending. The Conference Board’s Consumer Confidence Index fell 1.3 points in August 2025, with the decline driven by younger consumers under 35, while confidence among those over 55 improved. Meanwhile, the University of Michigan’s Consumer Sentiment Index slipped to 55.4 in early September from 58.2 in August, down 21% year over year. Inflation expectations held steady, but persistent worries about prices and tariff impacts remain. Consumer sentiment and confidence are leading indicators of discretionary spending, which drives two-thirds of U.S. economic activity. A continued slump suggests households may curb purchases and delay big-ticket decisions, raising risks for retailers, service providers, and the broader economy.

• An expansive bill signed into law by President Trump in July 2025 includes a provision to eliminate the de minimis exemption, heavily used by fast fashion and other e-commerce retailers, according to a report in Supply Chain Drive. The exemption had allowed imports under $800 to enter the US duty and tax free. While the change was slated to go into effect in 2027, the Wall Street Journal said the White House is ending the exemption as early as August 29, 2025. The new bill establishes a civil penalty for anyone trying to use de minimis entry in a way that violates any other provision of US customs law. Earlier this year, Trump had suspended the de minimis exemption for imports from China. The number of shipments entering the US using the exemption in the last four years increased from 637 million to over 1 billion per year.
• Following a summer surge in imports, US container ports are projected to see declining cargo volumes through year-end due to rising tariffs and trade policy uncertainty, according to the Global Port Tracker report by the National Retail Federation and Hackett Associates. July saw a near-record 2.36 million TEU as retailers accelerated shipments ahead of tariff hikes. However, forecasts show steady declines from September through January 2026, with December expected to be the slowest month since March 2023. Sectoral tariffs and reciprocal trade measures are expanding, impacting a broader range of goods and complicating long-term planning for retailers. The trend signals mounting pressure on US retail supply chains. For logistics providers, importers, and retailers, the volatility in trade policy and port activity underscores the need for agile inventory strategies and diversified sourcing. Rising costs and constrained planning windows may lead to higher consumer prices and margin compression across the retail ecosystem.