Market Navigator: US Apparel and Footwear Retailing—Discounters Poised for Growth Amid Challenging Backdrop

Published – July 2024

Each Market Navigator report offers an in-depth, data-rich view of a retail, consumer or technology sector and is packed with data on sectors, segments, companies and consumers. Our analysts discuss at greater length the sector themes they are observing and the insights they are forming on their markets. We intend these definitive guides to serve as points of reference to those in the retail ecosystem, guiding readers’ strategic decision-making and assisting them in tapping opportunities and navigating disruption in retail and adjacent industries.

In this Market Navigator, Coresight Research explores the US apparel and footwear market. Dive in today to gain insights into emerging ideas and opportunities in apparel and footwear retailing, understand the growth trajectory of the market and explore the competitive landscape. You will also discover key insights about market factors and consumer behavior and preferences, based on proprietary survey findings. We also discuss key themes we are watching in the US apparel and footwear market, aligning with our RESET framework. Key topics covered in this report include the importance of apparel customization options and hyper-personalized shopping journeys, the impact of artificial intelligence (AI) and machine learning (ML) on the apparel and footwear space, and growing consumer interest in sustainability, inclusivity and resale options, among many others.

Included with this Market Navigator: 

• Grab quick access to charts, data points and conclusions in the presentation download
• Access the data behind key charts and tables in the Excel download

Data in this research report include:

• Total and online market sizes and year-over-year growth rates, 2019–2028E
• Market breakdowns by category, distribution channel and segment, 2019–2028E
• US Consumer Price Index for the apparel and footwear, food and gasoline categories, 2017–2023
• Revenues, operating margins and store counts of leading brands and retailers from across the US apparel and footwear market
• Proprietary survey data on where US consumers are shopping for apparel and footwear products, and which brands and product types they are purchasing

Introduction

What We Think

• Coresight View on US Apparel and Footwear
• The Changing Channel Landscape
• Apparel Discounters To Deepen Their Footholds
• Industry Consolidation Wave To Continue
• The Rise of Secondhand Chic

Blue-Sky Thinking

• The Shifting Landscape of the US Apparel and Footwear Retail
• Hyper-Personalized Shopping Journeys
• Apparel Customization

The US Apparel and Footwear Market

• Market Scale and Opportunity
• Segment Breakdown
• Category Breakdown
• Distribution Channel Breakdown
• US Specialty Apparel Sales
• Online Market
• Market Factors

The Companies

• Competitive Landscape: All Retailers
• Competitive Landscape: Specialty Retailers
• Competitive Landscape: Brands and Brand Owners
• Store Numbers and Changes
• Store Traffic

Survey Analysis: Where Consumers Are Shopping Apparel in the US and What Are They Buying

• By Retailer
• By Brand
• By Category

Survey Analysis: Where Consumers Are Shopping Footwear in the US and What Are They Buying

• By Retailer
• By Brand
• By Category

Themes We Are Watching

• Responsive
• Engaging
• Socially Responsible
• Expansive
• Tech-Enabled

Global Observations and Learnings

• Global Retailers’ Monetization of Their Digital-Related Services and Platforms
• UK Retailers’ Increased Inclusion of Third-Party Brands
• Primark’s Brick-and-Mortar Strategies
• Apparel Brands’ Strategies in China

Technologies with Potential

• AI- and ML-Based Demand Forecasting
• Supply Chain Control Towers
• Web3 Technologies for Tracking and Tracing Products
• AI for Productivity Improvements
• Inventory–Scanning Robots
• RFID for Increased Inventory Accuracy
• AI for Personalization
• Applications for Seamless Experiences
• Real-Time Inventory Tracking Software

Real Estate and Store Openings/Closures

Retail Innovators

• Blue Yonder
• Rithum
• YOOBIC

Macro Context

• The Coresight Research View on the US Consumer Economy
• Unemployment and Wages
• Real Disposable Income
• Savings Rate
• Interest Rates and the Housing Market
• Gasoline Prices and Consumer Sentiment
• Consumer Spending

Notes and Methodology

Appendix

• Appendix: About the Coresight Research EnCORE Framework
• Appendix: About the Coresight Research RESET Framework
• Appendix: Ranking Retailers by Store Numbers

63-page PDF report

Amazon, American Eagle Outfitters, Burlington Stores, Dick’s Sporting Goods, Foot Locker, Gap, Hanesbrands, Kohl’s, Lululemon Athletica, Marks and Spencer, Ralph Lauren, Ross Stores, Target, The TJX Companies, Under Armour

1. The Coresight Research Fast Luxury Model
2. US Apparel and Footwear Market: Total Size (Left Axis; USD Bil.) and YoY Change (Right Axis; %)
3. US Apparel and Footwear Market: Nominal and Real Personal Consumption Expenditures (YoY % Change)
4. Breakdown of US Apparel and Footwear Sales by Segment (USD Bil.)
5. Breakdown of US Apparel and Footwear Sales by Category (USD Bil.)
6. US Estimated Distribution of Apparel and Footwear Sales (%; Ranked by 2023 Share)
7. US Specialty Apparel and Footwear Retailers: Total Sales (Left Axis; USD Bil.) and YoY Change (Right Axis; %)
8. US: Specialty Apparel and Footwear Retailers’ Sales Versus Total Apparel and Footwear Consumer Spending (YoY % Change)
9. US Apparel and Footwear Online Sector Sales (Left Axis; USD Bil.) and YoY Change (Right Axis; %)
10. US Apparel and Footwear E-Commerce Penetration Rate (Online Sales as % of Total Sales)
11. US: Real GDP YoY Growth (%)
12. US Single-Person Households and Population Aged 65+ (Millions)
13. Consumer Price Index for the Apparel and Footwear, Food and Gasoline Categories for All Urban Consumers (YoY % Change; Seasonally Adjusted)
14. Cotton Prices (Left Axis; USD per Pound) and YoY Change (Right Axis; %)
15. Denim Purchasers: Types of Jeans Bought in the Past 12 Months (% of Respondents)
16. US Major Apparel and Footwear Sector Retailers’ Revenues, Ranked by 2023 Apparel and Footwear Revenue (USD Bil.)
17. US: Leading Specialty Apparel and Footwear Retailers, Ranked by Revenue (USD Bil.)
18. Leading US Specialty Apparel and Footwear Retailers: Total Global Operating Margins* (%; Ranked by Revenue)
19. Key Comparable Metrics of Selected US Apparel Specialty Retailers (Ordered by 2023 Revenue)
20. Major Apparel and Footwear Market Brands’ and Brand Owners’ US Revenues (USD Bil.)
21. Operating Margins of Selected US Apparel and Footwear Brands and Brand Owners (Ranked by 2023 Total Global Operating Margins; %)
22. Key Comparable Metrics of Selected US Apparel and Footwear Brands and Brand Owners (Ordered Alphabetically)
23. US: Major Apparel and Footwear Retailers’ Store Numbers, Ranked by Number of Stores in 2024
24. US Major Apparel and Footwear Retailers’ Store Traffic, 2022: YoY % Change (Ordered by 2023 Estimated Revenues)
25. US Apparel Shoppers: Retailers from Which They Have Purchased Clothing or Accessories in the Past Three Months (% of Respondents)
26. US Apparel Shoppers: Brands from Which They Have Purchased Clothing or Accessories in the Past Three Months (% of Respondents)
27. US Apparel Shoppers: Clothing or Accessories Categories They Have Purchased in the Past Three Months (% of Respondents)
28. US Footwear Shoppers: Retailers from Which They Have Purchased Footwear in the Past Three Months (% of Respondents)
29. US Footwear Shoppers: Brands from Which They Have Purchased Footwear in the Past Three Months (% of Respondents)
30. US Footwear Shoppers: Footwear Categories They Have Purchased in the Past Three Months (% of Respondents)
31. Selected US Apparel Retailers’ Latest-Quarter Inventory Values (YoY % Change) and Supply Chain Commentary
32. Selected Notable M&A Transactions in the US Apparel, Footwear and Accessories Sector in 2023 and YTD 2024*
33. Identified Technologies with Relevance and Potential in the Apparel and Footwear Sector
34. US Apparel and Footwear Market: Number of Major Retail Store Openings, Store Closures and Net Store Openings
35. US Apparel, Footwear and Accessories: Major Store Openings in 2023
36. US Apparel, Footwear and Accessories: Major Store Closings in 2023
37. US Unemployment Rate (Left Axis; %) and US Average Hourly Wages (Right Axis; USD)
38. US Real Disposable Income: YoY Change (Seasonally Adjusted Annual Rate)
39. Personal Saving Rate (Left Axis; %) and YoY Change (Right Axis; PPTs)
40. New Housing Starts (Left Axis) and Case-Shiller Home Price Index (Right Axis; YoY % Change)
41. US Regular All Formulations Gas Price (USD per Gallon; Left Axis)* and University of Michigan Consumer Sentiment Index (Right Axis)
42. US Real and Nominal Consumer Spending Growth (YoY % Change)