For the fourth quarter apparel sales are expected to decline in the US. With average prices forecasted to rise two per cent, dollar sales are projected to fall by one per cent.

According to the National Purchase Diary Panel (NPD) Group, “Consumers increasingly plan to buy apparel tailored to a specific need. Sales of sweatshirts, outerwear, and dresses are expected to grow in the fourth quarter versus last year.Along with being more selective in their purchases, many consumers are invoking cost-saving measures. Last quarter, 41 per cent of consumers decided to forgo buying apparel to purchase products in another category. Lower prices are for consumers the most important factor for their future apparel purchase decisions.

Exploring alternative buying options, nearly 45 per cent of consumers bought apparel on a resale platform in the third quarter, rising two points since the first quarter. As brands and retailers kicked off holiday promotions before Halloween costumes were purchased, an elongated holiday selling season can be expected for the apparel industry.

In the face of rising prices, the fourth quarter will be a balancing act as shoppers prioritise the areas where they will trade down, pull back, or invest, causing them to be more prudent in their apparel spending. Wardrobe needs and a return to social gatherings will prompt consumers to invest in certain aspects of their wardrobe this holiday season.