According to Bloomberg News, major retail clothing chains have seen a sharp decrease in sales for the month of June. Consumers have been purchasing staple goods such as groceries and electronics, but major retail clothing chains such as Macy’s Inc., and J.C. Penney Co. have seen a drastic fall in consumer spending.
Not surprisingly, discount retail chains such as Target and Wal-Mart are seeing an increase in consumer shopping after displaying the back-to-school merchandise and removing the summer merchandise displays.
U.S retailers claim consumer sales rose in June by an estimated 2.4 percent. Yet, the clothing industry seems to be taking a hard hit with losses reported at an estimated 4.0 percent. Consumer spending is shifting with the economy. Instead of spending hard-earned money on clothing, consumers are frugally shopping and purchasing bare necessities.
Sears Holding Corp. Reports Sharp Quarterly Declines
Sears Holding Corp. is the largest department store in the U.S, and the shocking facts show this mega-retailer has a second-quarter loss of more than 45 percent. Even the discount sister company K-Mart has seen a loss of almost 5.0 percent in the same period. With the back-to-school merchandise quickly approaching, even these once popular department stores are seeing consumers spend less while demanding the same excellent quality.
Where The Consumers Are Going
Clothing retail chain giants such as Gap Inc. and Kohl’s are seeing sharp declines in consumer spending. According to this same report, many of the discount chain stores are seeing large increases in consumer sales. Abercrombie & Fitch reported consumer spending was up by 2 percent, and Zumiez Inc. reported consumer spending was up by over 14 percent.
Consumers are spending, but how the consumer spends is changing. Consumers are choosing to shop smartly being more frugal and careful than ever before. The economy is unstable, and the instability is forcing consumers to plan purchases more carefully.
How To Purchase Safely
Retailers purchasing wholesale women’s clothing will find the back-to-school season is a hotbed of consumer spending. Gearing towards a frugal consumer audience is going to benefit the retailer wanting to make a profit in this unstable economy. Taking chances on new designs and fashion will pay off as along as the purchase is cost effective, smart, and fashionable.
Wholesale women’s clothing will also find discount sales and end-of-the-season sales appealing to the consumer causing an increase in consumer spending. A more frugal consumer audience translates to profitable in-store and/or online store special sales.
Special Occasion Apparel
As the consumer spending is revealing more frugal spending habits there is one advantage many wholesales and/or retailers should keep in mind. While general consumer spending is down, consumer spending is increasing for necessities and staples. Purchasing special occasion apparel is a time the consumer can lavishly spend on a basic necessity no matter the occasion. Of course, wholesales and/or retailers offering a cost effective solution for the special occasion apparel will find a loyal, reliable consumer audience.
Changing With The Times
Purchasing and selling wholesale women’s clothing has waxed and waned with the times; the current apparent trend in consumer spending will soon change. Discount clothing stores and small, local retail clothing stores have an advantage – consumer loyalty. Selling to a more localized consumer market or a niche consumer market is proving more reliable and profitable than the large department retail stores.
Motivating consumer spending is easy with a diverse selection of women’s clothing. Consumers appreciate a “down home” retail storefront where personal touches cannot be replicated in larger department stores. The average consumer expects an affordable, frugal solution to basic necessities. Does your retail storefront offer what the consumer is looking for in terms of price, selection, and customer service?
Keep Your Eyes Open
As the summer season is being placed on discount racks making room for the fall selection and the popular back-to-school styles, wholesale women’s clothing is changing to meet those changes as well. There are many smart purchases to be made in wholesale apparel because of this seasonal switch, and keeping those eyes open will help prepare the retailer for future fashions and seasons.
While the economy may be fluctuating taking with it the consumer spending habits, retailers offering stability will always come out on top. The waxing and waning of current consumer spending habits may be in constant flux, but the retailer who plans accordingly will offer the consumer stability, and in the process, gain a more loyal consumer base.
