Clothing Stores
Industry Profile Report
Dive Deep into the industry with a 25+ page industry report (pdf format) including the following chapters
Industry Overview Current Conditions, Industry Structure, How Firms Operate, Industry Trends, Credit Underwriting & Risks, and Industry Forecast.
Call Preparation Call Prep Questions, Industry Terms, and Weblinks.
Financial Insights Working Capital, Capital Financing, Business Valuation, and Financial Benchmarks.
Industry Profile Excerpts
Industry Overview
The 35,400 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.
Industry size & Structure
The average clothing retailer employs fewer than 25 workers and generates $6 million annually.
- The clothing retail industry consists of about 35,400 companies that employ 852,000 workers and generate about $225 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 55% 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.
Industry Forecast
Clothing Stores Industry Growth
Recent Developments
Mar 18, 2025 - Forever 21 Joins List of Ailing Retailers
- According to the Wall Street Journal, trendy retailer Forever 21 filed for bankruptcy in March 2025 and plans to liquidate while looking for a buyer through a court-supervised sale process. The filing follows a string of well known retailer closures including JoAnn and Party City, which struggled in a challenging environment marked by inflation, cautious consumers, and economic uncertainty. Owned by Catalyst Brands, Forever 21 had been attempting a turnaround amid stiff competition from China-founded fast fashion retailers Shein and Temu. The bankruptcy filing, its second in six years, covers the operator of the Forever 21 stores in the US, the licensee of the brand, and some US subsidiaries. Not included in the bankruptcy are its international stores run by other licensees or its intellectual property. The retailer will close its 350-plus US stores by May 1 if it does not find a buyer, according to Retail Dive.
- According to a report in CFO Dive, consumer confidence levels, an indicator of discretionary spending, have fallen due to consumer anxiety about tariff effects and economic uncertainty. The consumer sentiment index from the University of Michigan dropped 11% in March 2025, marking the third straight month of declines and hitting the lowest level since November 2022. In addition, the Conference Board index of consumer sentiment in February 2025 marked the biggest decline since August 2021 and the third straight month of declines. According to Stephanie Guichard, senior economist for global indicators at the Conference Board, “There was a sharp increase in the mentions of trade and tariffs, back to a level unseen since 2019. Most notably, comments on the current administration and its policies dominated the responses.”
- A new tariff on China by the US is also expected to end a trade rule provision known as de minimis that had exempted lower value goods (valued at $800 or less) from duties and tariffs, according to Chain Store Age. When a new 10% tariff on imports from China went into effect on February 4, the executive order by President Donald Trump also ended the de minimis exemption on shipments from China. However, the de minimis change has been put on hold following the backup of packages at ports. The rule has become a factor as fast fashion e-commerce retailers like Shein based in China have used the exemption to ship their goods to US buyers. According to government data, the number of shipments entering the US using the exemption in the last decade increased from 140 million per year to over 1 billion per year.
- Six retail banners have joined under a recent merger between legacy department store operator JC Penney and Sparc Group, according to Chain Store Age. The new organization is called Catalyst Brands. Sparc Group owned a portfolio of brands, including Aeropostal, Brooks Brothers, Eddie Bauer, Forever 21, Lucky Brands, and Nautica. Catalyst said it is exploring strategic options for its Forever 21 chain. The newly formed company will operate as a joint venture and owns over 1,800 locations with 60,000 employees. Sparc Group, which stands for Simon Properties Authentic Retail Concepts, was a strategic partnership between Simon Property Group, Brookfield Corporation, Shein, and Authentic Brands Group. JC Penney has struggled in recent years, filing for Chapter 11 bankruptcy protection in 2020 before being acquired by Simon Property and Brookfield for $800 million.
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