With a looming recession and increased prices of everyday purchases, customers are prioritizing basic needs such as groceries and rent and are cutting back on both the quantity and amount spent on gifts, especially apparel, footwear, and accessories.
A&M’s Consumer Sentiment Survey revealed that consumers expect to decrease apparel spend by 20% and jewelry & accessories spend by 33% in the next 6 months.
Many brands are sitting on an excess amount of inventory after the over-ordering frenzy during the supply chain challenges of last year and the increased demand for luxury goods post-shutdowns. This especially leaves fashion and accessories brands vulnerable to a crash in consumer demand. With sunk costs in large holiday marketing campaigns and continued high labor costs, brands could be left cash-strapped with substantial amounts of inventory post-holiday season.
In this piece, we have outlined actions apparel and accessories brands can take immediately to mitigate risk this holiday season to survive the Holiday Slump.