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Insights from Consumer Edge's 2026 Apparel Outlook

As we move into 2026, new data from Consumer Edge, a prominent player in the global consumer insights sector, reveals a significant shift in consumer behavior regarding apparel spending. The report highlights that while overall spending for apparel categories from January to November 2025 saw a slight decline, value-oriented brands experienced notable growth, particularly among affluent consumers. This trend indicates that income is no longer the sole predictor of apparel purchases, impacting how brands strategize their marketing and product offerings.

Key Findings

Consumer Edge's report analyzed spending trends across various demographics and segments, detailing how a diverse range of value-driven brands are resonating well, even with higher-income shoppers. Here are some significant takeaways:

• - Resilience of Value Brands: The analysis shows that brands like Miu Miu, Quince, Alo Yoga, and Longchamp emerged as some of the fastest-growing direct-to-consumer (DTC) brands, highlighting a shift towards quality and value over mere brand prestige.
• - Youthful Preferences: Among younger consumers, particularly Generation Z (ages 18-24), spending remained comparatively stable. This demographic is increasingly favoring brands that offer a blend of cultural relevance, trendiness, and affordability, as seen with choices like Coach and SHEIN.

Shopper Profiles

The shifting landscape of apparel spending reveals a new shopper mindset, especially among different age groups:

• - Millennials are now gravitating towards practical and value-focused brands. Despite facing tougher spending conditions, they show a preference for essential, versatile clothing choices, with brands like Quince, Uniqlo, and Depop gaining traction.
• - High-Income Shoppers are splitting their purchases among quality essentials and trend-driven or off-price brands. Retailers such as Nordstrom Rack and Depop are increasingly popular within this cohort as consumers become more discerning with their choices.

The Rise of Resale and Off-Price Retail

Data points to a shifting emphasis where resale and off-price retail formats outperform traditional department stores. Platforms like Depop and Poshmark are capturing the interest of savvy shoppers seeking value. Reports suggest that thrift shopping has seen a year-over-year increase, demonstrating a cultural shift towards sustainability and budget-consciousness.

Footwear and Athletic Apparel

Despite the growth in value-focused retail, some segments like footwear and athletic apparel are still pressured, with established giants losing share to more dynamic and trend-aligned new entrants in the market. This trend emphasizes the need for legacy brands to innovate and adapt to changing consumer preferences.

Luxury Market Divergence

The luxury market presents a mixed picture, with brands like Cartier managing to increase market share, while renowned players like Gucci and Louis Vuitton are losing appeal to consumers. The multi-brand luxury sector has seen growth in platforms such as Mytheresa, emphasizing that consumer loyalty is becoming less about legacy and more about perceived value.

Conclusion

The shifting dynamics in apparel spending highlight the increasing importance of perceived value and relevance in consumer choices. As Michael Gunther, Vice President at Consumer Edge stated, understanding these nuanced preferences will be vital for brands looking to thrive in the evolving retail landscape of 2026. The future favors brands that embrace a thoughtful, targeted approach as consumers continue to navigate their apparel preferences through the lenses of quality and utility.

To explore these insights further, attend Michael Gunther’s presentation at NRF 2026 Retail's Big Show on January 13. The full report can be accessed through Consumer Edge’s website.