Today, the apparel and footwear retail market is entering a more volatile growth phase as economic uncertainty, geopolitical disruption, AI and shifting consumer values reshape competition. Market players can no longer depend on standard omnichannel models or price alone. This report looks at how, to build resilience and win in an increasingly complex environment, brands and retailers must combine digital strength, strong execution, in-person community engagement and emotionally resonant experie
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Key findings
A cautious global outlook amid volatility
The outlook for apparel and footwear is shaped by challenging macroeconomic and geopolitical factors. As the prospects for growth to 2030 remain moderate and uneven across markets, fashion players need to capture growth in fast-expanding markets while simultaneously defending scale, premiumisation and profitability in mature Western markets.
Third spaces and shopping experience key to add value
As consumers adjust their financial mindset, they are seeking the best value they can get but low prices are not always the preferred choice. For many, value is now more closely linked to the overall shopping experience and market players will increasingly enhance their value through high-touch experiences in their physical locations, and more personalised assistance online. Hence, emotional connections and community engagements become priorities for fashion businesses.
AI reshape consumers’ discovery and shopping journeys
As customers increasingly embrace AI and go seamlessly online and offline for their purchases, while AI-powered searches and agentic AI have the potential to reshape the discovery and shopping journeys, retailers must now ensure that pricing, product and availability data is structured in a way that can be reliably processed by AI agents that increasingly influence consumer choice.
Second-hand and primary markets to work together
As the pre-loved culture becomes mainstream in Europe and the US, and is gaining traction in other regions, competition will intensify between brands and marketplaces. Brands and retailers need to find the right partners and/or develop their own resale strategies today, to drive both revenues and cultural relevance tomorrow, while second-hand platforms increasingly position themselves as curators and trendsetters.
Key findings
Key facts to share
Geopolitical forces impact on the world economy and the fashion industry?
Fashion poised for slow and uneven growth as unpredictability becomes the new norm
Sportswear continues to outperform the wider industry
Slow global growth and uneven prospects across regions: A challenging path ahead
Omnichannel strategies increasingly leverage “ store theatre” to boost sales on and offline
E-commerce: Diverse and uneven growth opportunities across regions
The new retail playbook is about emotions, cultural relevance and capturing occasions
Brick-and-mortar stores continue to hold a strong appeal for consumers
Sports goods stores and off-price channels are the fastest growing offline channels
Experience-led consumption continues to shape retail strategies
Apparel and footwear specialists benefit from greater DTC focus
lululemon is actively expanding its presence in EMEA with new flagship stores
Inditex and Fast Retailing bank on physical stores to conquer the US market
Anta Group elevates its core brand as it opens flagship stores in Paris and Beverly Hills
Sports goods stores: Slowing but continuous growth thanks to major chains’ innovation
Decathlon builds communities to foster loyalty and generate new revenue streams
Dick’s Sporting Goods Inc acquired Foot Locker in 2025, tripling its store count
Department stores: Diverging growth path between standard and high-end destinations
Galeries Lafayette is set to open a second flagship store in India, by late 2026
Nordstrom bounces back thanks to experiential shopping and “Nordstrom Rack”
E-commerce: Continued growth for apparel and footwear
The global e-commerce landscape offers uneven growth opportunities across regions
ASOS explores physical retail opportunities after the success of its recent pop-ups
AI systems to increasingly sit between consumers, brands and retailers
AI is rapidly changing fashion shopping and discovery, in many ways
JD launches AI-powered checkout in the US, to pioneer agentic commerce
Douyin is expanding its quick commerce and AI footprint and gaining share over Tmall
AI will increasingly reshape the global fashion e-commerce landscape
Developing markets will offer a strategic opportunity for fashion brands and retailers
Retail will further evolve into third spaces and immersive experiences
Consumers will move increasingly fluidly between new and pre-owned fashion
Experience-led spaces will become the future of fashion retail
Recommendations/How to win
Apparel and Footwear
Apparel is the aggregation of clothing and footwear. This dataset covers retail sales of apparel through both store-based retailers and non-store retailers. Excludes black market sales (i.e. untaxed, generated within informal retailing)and duty free sales (travel retail). Items must be new when sold to the consumer; second-hand/used items are excluded. Antique and/or vintage clothing and footwear is also excluded.
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