Clothing Stores

The 34,143 Clothing retailers in the US generate revenue by selling a variety of apparel and apparel-related products to consumers. Clothing stores sell primarily new clothing, and may specialize in a particular category, such as men, women, children, infants, families, or accessories. Family clothing stores account for 57% of industry sales. Women’s clothing stores are 19%; other specialty stores are 20%, and men’s clothing stores are 4%.

Seasonality of Demand

Most clothing stores experience major seasonal fluctuations during the winter holiday and back-to-school periods.

Trends and Fads Rapidly Change

The clothing industry is in a constant state of change, driven by fashion trends and fads.

Jul 21, 2026 - Apparel Retailers Eye Record School Season

• A record back-to-school season could provide a meaningful sales boost for US clothing stores, although heavy promotional activity is likely to pressure margins, according to a Retail Dive report. The National Retail Federation and Prosper Insights & Analytics forecast K-12 spending to reach a record $43.3 billion and college spending to hit a record $103.5 billion, with apparel and shoes among the largest K-12 spending categories. Retailers are driving demand through early promotions, and 54% of shoppers have already purchased school items during major sales events. However, affordability remains the dominant concern, with 46% of shoppers delaying purchases in search of better deals and 78% expecting higher back-to-school prices. As a result, clothing retailers may benefit from stronger traffic and higher seasonal sales volumes, but sustained discounting and value-focused shopping are likely to limit pricing power and weigh on profit margins.
• The Conference Board's June Consumer Confidence Survey and the University of Michigan's preliminary July Surveys of Consumers suggest the US clothing store industry could see improving apparel demand, although shoppers remain value-conscious. The Conference Board Consumer Confidence Index edged up to 91.2 in June from 90.6, while the Present Situation Index fell 3.0 points to 116.4, reflecting weaker views of the labor market. The Expectations Index rose 3.0 points to 74.4, signaling greater optimism about future business and income prospects despite remaining below the recession-warning threshold of 80. Meanwhile, the University of Michigan Index of Consumer Sentiment climbed 9.9% month over month to 54.4, with the Current Economic Conditions Index up 15.1% to 54.9 and the Expectations Index up 6.5% to 54.0. Together, the surveys point to improving consumer confidence that could support clothing sales, though elevated inflation expectations and labor market concerns may temper discretionary spending.
• The CNBC/NRF Retail Monitor, powered by Affinity Solutions, showed clothing and accessories stores outperforming the broader retail market in June, signaling a strong start to the summer selling season for US clothing retailers. Clothing store sales increased 0.63% month over month and 13.65% year over year, exceeding overall retail sales growth of 0.33% month over month and 9.41% year over year. The gains were driven by summer promotions, early back-to-school shopping, and consumers' continued willingness to spend despite economic uncertainty, supported by a resilient labor market and retailers' focus on affordability. While the year-over-year comparison benefited from weak June 2025 sales, seasonally adjusted retail sales remained solid, suggesting underlying demand for apparel improved as shoppers responded to promotions and seasonal merchandise.
• US clothing retailers may face challenges in driving apparel discovery through AI, as consumers continue to prefer traditional shopping methods, according to a YouGov survey in Chain Store Age. Sixty percent of clothing shoppers prefer discovering new styles and brands by browsing in stores, compared with just 6% who would use AI tools such as ChatGPT or Gemini for apparel discovery. While some shoppers see value in AI for practical functions such as checking product availability (26%) and receiving size recommendations (25%), concerns about privacy and data security (51%), recommendation accuracy (47%), and reduced human interaction (45%) remain significant barriers. For clothing retailers, the findings suggest that investments in AI may deliver the greatest returns when focused on enhancing convenience and personalization rather than replacing traditional discovery experiences. In-store merchandising, omnichannel engagement, and human-assisted shopping are likely to remain key drivers of apparel sales and customer acquisition.

Industry size & Structure

The average clothing retailer employs 25 workers and generates $6 million annually.

• The clothing retail industry consists of about 34,143 companies that employ 841,300 workers and generate about $223 billion annually.

• Family clothing stores account for 57% of industry sales. Women's clothing stores are 19%; other specialty stores are 20%, and men's clothing stores are 4%.

• The industry is concentrated at the top, and highly fragmented at the bottom. The top 20 firms account for 50% of industry sales.

• The average independent clothing retailer operates out of a single location, employs fewer than 10 workers, and generates between $300,000 and $900,000 annually.

• The industry includes national chains, regional chains, and independent retailers. Some large apparel manufacturers have retail operations.

• Large companies include TJX Companies (TJ Maxx, Marshalls), The Gap, Victoria's Secret & Co., American Eagle Outfitters, and Ross.