Apparel Wholesalers NAICS 424350

Mar 30, 2026 - Apparel Sourcing Diversifies as China Share Declines

• US textile and apparel imports remained relatively stable in 2025, signaling steady supply for apparel wholesalers, with imports declining just 3.3% to $104 billion from $107 billion in 2024 after a 22% drop in 2023, according to a Fashion Network report. Tariffs reshaped sourcing rather than reducing volume, with China imports falling 32.3% while Vietnam rose 12.9% to $18.4 billion. Bangladesh (up 11.5%) and Cambodia (up 26.4%) also gained share, while India held at $8.3 billion. For US apparel wholesalers, the shifting supplier mix increases sourcing complexity but supports supply continuity. Tariff-related cost pressures were often passed back to suppliers, though potential reimbursement delays create uncertainty. Overall, stable import levels support inventory availability, but ongoing geopolitical and pricing dynamics may pressure margins and require more diversified sourcing strategies.
• Apparel prices were 2.5% higher in February 2026, compared to the previous year, according to the Consumer Price Index by the US Bureau of Labor Statistics (BLS). Prices for the category were up 4.2% from the previous month. Employment by apparel clothing and clothing accessories merchant wholesalers fell 1.2% in January 2026 compared to a year ago, according to the BLS. Employment in the industry for the past decade has fallen by 6.8%, lower than the 12% growth in overall private employment. Industry wages were up 10.4% in January 2026 year over year, reaching $27.54 an hour for nonsupervisory employees. Producer inflation for apparel and piece goods merchant wholesalers was up 3.8% in February 2026 compared to a year ago, according to producer price data released by the BLS.

• Retail sales growth is supporting demand for apparel wholesalers, with total retail sales rising 0.28% month over month and 6.24% year over year in February 2026, marking the fifth consecutive monthly increase, according to the latest CNBC/NRF Retail Monitor report. Core retail sales grew 0.27% month over month and 5.87% year over year. Clothing and accessories stores—key wholesale customers—outperformed, with sales up 0.66% month over month and 11.05% year over year. Strong gains, supported by wage growth and low unemployment, indicate healthy downstream demand. However, retailers remain focused on competitive pricing amid value-conscious consumers and global uncertainty. For apparel wholesalers, this environment supports steady order volumes but may pressure margins as retail partners prioritize cost control and pricing competitiveness.
• The apparel industry is facing significant disruption from US tariffs, which have sharply increased costs and reshaped sourcing strategies, according to a report in the Business of Fashion (BOF). The BoF–McKinsey State of Fashion 2026 report showed that duties on apparel and footwear imports spiked from 13% to 54% in spring 2025 before easing to 36%, above historical norms. With the US importing 89% of apparel and leather goods, manufacturers are among the hardest hit. Some 76% of fashion executives say tariffs and trade disruptions will be the key factors shaping the industry in 2026. To offset margin pressures, brands are raising prices, renegotiating supplier terms, and streamlining assortments. Manufacturers are diversifying production footprints, with expansions into Vietnam and Kenya, underscoring the need for agility in a volatile trade environment.