Clothing Stores
Companies in this industry operate establishments primarily engaged in retailing new clothing. Major companies include Gap, TJX Companies, and Victoria's Secret (all based in the US), along with Asos (the UK), H&M (Sweden), and Zara (Spain).
Revenue for the global apparel and footwear industry is forecast to reach more than 3 trillion by 2030, according to Statista. In 2022, about 18 retailers in the US were at risk of bankruptcy, according to Retail Dive. Key growth drivers include sportswear sales and demand from emerging markets.
The US clothing store industry includes more than 95,000 establishments (single-location companies and units of multi-location companies) with combined annual revenue of about $190 billion.
Competitive Landscape
Personal income and fashion trends drive demand for clothing. The profitability of individual companies depends heavily on effective merchandising and marketing. Large companies can offer wide selections of clothing and have advantages in purchasing, distribution, and marketing. Small stores can compete by offering unique merchandise, targeting a specific demographic, providing superior customer service, or serving a local market. The US industry is concentrated: the 50 largest companies account for about 70% of industry revenue.
Competition for the clothing store industry includes department stores, discount and outlet stores, and internet and catalog retailers. The online and off-price apparel sales channels are growing rapidly -- especially among younger women who are major consumers of apparel -- primarily at the expense of specialty apparel and department stores. Amazon is among the largest sellers of apparel in the US, along with Walmart and CVS, according to Forbes Magazine.
Because of the lower costs to manufacture apparel abroad, US clothing retailers purchase the vast majority of the apparel they sell from vendors outside the US. The largest suppliers to the US are Bangladesh, China, Vietnam, and Indonesia, according to Fibre2Fashion Magazine. Tensions over trade between the US and China could result in consumers paying more for clothes, shoes, and accessories, or lower profit margins for clothing stores reluctant to raise prices.
Products, Operations & Technology
Major products include women's clothing (about 45%), men's clothing (about 20%), and clothing for children and infants (about 10%). Other sources of revenue
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Sales & Marketing
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Finance & Regulation
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Regional & International Issues
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Human Resources
Also includes the following chapters:
Quarterly Industry Update
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Industry Indicators
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Business Challenges
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Trends and Opportunities
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Call Preparation Questions
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Financial Information
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Industry Forecast
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Industry Websites
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Glossary of Acronyms