US consumers’ spending on clothing has dropped by more than half since 1987 says consulting, auditing, and risk-management firm Deloitte. In 1987, US shoppers devoted about five per cent of their discretionary spending on clothes. In 2017, it was about two per cent. Younger shoppers tend to spend a bit more, but the overall trend has been consistent across age groups. What’s driving the decrease, though, isn’t consumers buying less clothing. Rather, clothes are getting cheaper.

For decades, fashion brands have engaged in intense price competition seeking out ever-cheaper places to make their clothes. While retail prices overall have risen in the US, clothing hasn’t kept pace. Consumers still look to value, product, and convenience as the overwhelmingly important attributes while making decisions. Perhaps cheap clothing offers consumers at least one low-cost thrill, while big purchases get tougher to afford. Deloitte asked shoppers their reasons for choosing to shop at a retailer. Price was the most common response, beating out product selection, convenience, and several other factors.

Apart from clothing how much of their money American consumers are spending on different categories, such as entertainment, dining out, alcohol, and furniture, has remained relatively stable. In the entertainment category, for example, income level—rather than age—is a bigger factor in driving additional spending.