Holiday Outlook: Apparel & Footwear Retail

We expect apparel and footwear retailers to continue to see revenue growth decelerate due to many headwinds as we move into the holiday season. The U.S. consumer has been resilient in 2023. However, excess savings built up during the pandemic has normalized, credit card debt is on the rise, student loan repayments have resumed, and interest rates continue to climb. We expect low- to middle-income consumers to feel the most pressure over the next three months and see continued promotional activity for most apparel and footwear retailers during the holiday season.