Off-price retailers and luxury chains are outperforming apparel retailers, new data shows, as middle-market stores get squeezed by low-income shoppers who are priced out and wealthy consumers who’d rather splurge.
(Bloomberg) — Off-price retailers and luxury chains are outperforming apparel retailers, new data shows, as middle-market stores get squeezed by low-income shoppers who are priced out and wealthy consumers who’d rather splurge.
A report from Placer.ai, which uses cell phone data to track track shopper traffic, said that foot traffic to off-price, luxury and secondhand retailers surged in May from January 2019. Over the same period, traffic to apparel retailers fell, although Placer.ai noted that visits have recently started to trend upwards.
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“Whether this growth momentum continues will likely hinge on whether inflation continues to fall and how apparel chains choose to approach the upcoming back to school and holiday season,” the company wrote.
Placer.ai’s data showed how off-price retail has gained visits since early 2019 — apparently at the expense of apparel retailers.
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