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 35,000 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 $5-6 million annually.

    • The clothing retail industry consists of about 35,000 companies that employ 851,300 workers and generate about $216 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
                              Source: Vertical IQ and Inforum

                              Recent Developments

                              Mar 13, 2024 - Labor Costs Rise, Employment Flat
                              • According to data from the Bureau of Labor Statistics (BLS), employment levels for clothing and clothing accessory retailers remained mostly unchanged in December 2023 compared to a year ago. Employment levels have steadily increased in recent years but remain 15% lower than pre-pandemic levels. Labor costs have climbed significantly in recent years, with wages remaining over $19 an hour for much of 2023, showing a 24% rise since December 2019 and 3% since December 2022. Producer prices for clothing retailers dipped to a low midyear before climbing for much of the second half of 2023. Consumer spending levels grew in the last half of 2023, a 3.1% increase in the third quarter and 2.8% in the fourth quarter, according to Reuters.
                              • According to a recent ConsumerSignals survey by Deloitte, about 75% of consumers worldwide have made at least one splurge purchase to treat themselves in the past month. The average amount spent on the last splurge purchase was $45. The survey examined consumer spending behavior and found that the three main drivers for splurge purchases were comfort (22%), relaxation (15%), and practicality/usefulness (12%). The most popular categories for splurge purchases included food and beverage (43%), clothing and accessories (18%), personal care (11%), electronics and accessories (8%), toys and hobbies (6%), health and wellness (5%), home and kitchen (3%), and household goods (3%). According to the Spending Intentions index, global total spending intentions remained consistent in January compared to December and were significantly higher than a year ago.
                              • Consumer confidence levels fell in February 2024 after increasing for three consecutive months, according to data from The Conference Board. The Conference Board’s consumer confidence index fell to 106.7 in February 2024 from 110.9 in January 2024. According to Dana Peterson, Chief Economist at The Conference Board, “The decline in consumer confidence in February interrupted a three-month rise, reflecting persistent uncertainty about the US economy. The drop in confidence was broad-based, affecting all income groups except households earning less than $15,000 and those earning more than $125,000.” Peterson added that the decline in consumer confidence was largest in householders over 55 and those under 35. Plans to purchase homes, autos, and large appliances decreased slightly on a six-month basis.
                              • A new report from Mastercard in RIS News shows that clothing and restaurants fared well during the 2023 holiday season. The apparel sector grew 2.4%, and restaurants were up 7.8% year over year during the shopping period from Nov. 1 through Dec. 24, 2023. Overall retail sales (excluding automotive) grew 3.1% year over year during the holiday season, failing to reach the 3.7% growth predicted by Mastercard in September. The results were lower than last year’s holiday sales, which posted 7.6% growth over the previous year. The report showed online retail sales growth of 6.3% during the 2023 holiday season, higher than the in-store sales growth of 2.2%. Even so, the percentage of consumers shopping in-store continues to account for a larger portion of total retail spending.
                              Get A Demo

                              Vertical IQ’s Industry Intelligence Platform

                              See for yourself why over 60,000 users trust Vertical IQ for their industry research and call preparation needs. Our easy-to-digest industry insights save call preparation time and help differentiate you from the competition.

                              Build valuable, lasting relationships by having smarter conversations -
                              check out Vertical IQ today.

                              Request A Demo