As of February 2026, the American apparel landscape is navigating a fundamental structural transition. The newly released 2026 US Fashion Consumer Outlook Report by Informa reveals that the era of dopamine-driven impulse purchasing has yielded to a period of intentional consumption. With 66 per cent of consumers now identifying value for money as their primary purchase driver - a figure that dwarfs the 10 per cent who prioritize trendiness - brands are being forced to justify every price point through a lens of durability and classic appeal.
Navigating discretionary displacement
Fashion is no longer competing solely within its own sector; it is now vying for a shrinking slice of discretionary income against experiential categories. In the current fiscal year, fashion ranks fourth in spending priority, trailing behind dining, travel, and fitness. Success in this environment requires a pivot from volume-chasing to margin-focused engagement, says Greg Kerwin, Senior Vice President, Fashion by Informa. This displacement is particularly evident in the mid-market, where undifferentiated labels are struggling to retain customers who are increasingly ‘trading down’ to off-price channels or "trading across" to wellness-related purchases.
The tariff and fit friction
External pressures are further complicating retail strategies. With anticipated tariff increases expected to inflate shelf prices, 92 per cent of consumers report plans to adjust their behavior by delaying purchases or seeking private-label alternatives. Simultaneously, the industry faces an internal crisis: 64 per cent of shoppers cite inconsistent sizing and poor fit as their greatest barrier to purchase. This ‘fit friction’ is driving a surge in AI-powered sizing technology investments, as retailers aim to reduce the high e-commerce return rates that eroded nearly 15 per cent of net margins in 2025.
Informa operates as a leading international events, digital services, and academic research group. Their fashion division acts as a critical intelligence hub for the global community, providing data-driven outlooks and B2B platforms like MAGIC and Coterie to help retailers operationalize shifting consumer sentiments across 55 countries.
