Fashion hasn’t been this trendy since Sex and the City


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After years of prioritizing casual over chic, fashion is back in style. But for how long?

The question is of more than sartorial importance. Many retailers mistakenly bet big that consumers will continue to dive into their sweatpants; now they must decide whether the current resurgence of elegant dresses and smart suits is a post-pandemic flare-up – or heralds a renewed trend that will last for several more seasons.

Rising inflation and fears of recession have hit retail sales hard. Chains including Target Corp. and Walmart Inc., for example, are struggling with an inventory glut as consumers have changed tastes or cut back. But amid the whirlwind, there is one bright spot: fashion.

On both sides of the Atlantic, shoppers are ditching their loungewear and looking for elegant dresses and blazers. Ralph Lauren Corp., Nordstrom Inc. and Macy’s Inc. have all reported an increase in demand for finer items. Rent the Runway Inc., the high-end clothing rental service, was one of the few consumer-facing companies this earnings season to beat estimates and raise its guidance as it saw more women hiring women’s clothing. bold for special occasions.

“Black tie is to 2022 what sweatpants were to 2020,” Rent the Runway co-founder and chief executive Jennifer Hyman told analysts last week.

A similar picture is in Europe. Inditex SA, whose strength is interpreting catwalk trends for a mass audience, saw sales between May 1 and June 5 rise 17% compared to the same period in 2021. So much for fast fashion giant Shein Group Ltd . who killed Zara. Indeed, more refined wear tends to favor premium retailers over cheap chic. It wouldn’t be surprising to see Prada SpA and Kering SA take advantage of Gucci and Saint Laurent when they report next month, as they generate 20%-30% of apparel revenue, according to Bernstein.

The swing of the pendulum towards fine clothing also has a wider resonance. As silhouettes change, so does the need for new footwear – think high heels rather than sneakers. Even the underwear gets a lift. “Right clothes” need more structured underwear. This could give an additional boost to Victoria’s Secret & Co.’s own efforts. The retailer recently arrested a period of decline in its market share in bras, with a marginal increase.

The main force driving this pivot is that events have turned with a vengeance. People socialize in the evenings and on weekends. About 2.5 million weddings are expected to take place in the US this year – the most since 1984, according to The Wedding Report. Add in long overdue holidays and vacations, and that’s a lot of new appointments.

Many people had not bought formal wear for more than two years. With so many shoppers instantly restocking — and posting on TikTok and Instagram — it’s become a collective experience, creating the biggest fashion buzz since 1998, when Carrie Bradshaw appeared in her striped pants in the original Sex and the City.

It helps that there are so many clothing trends right now. The garment has grown in popularity over the years, but now comes in a number of variations, including a return to the wrap style, which enjoyed its last popularity a decade ago. Prints are also on display, and there are plenty to choose from, whether you want floating or geometric florals.

Bright colors have made a great comeback, perhaps reflecting our optimism about life after the pandemic. This works well for dresses, but also for fitted jackets and trousers – another trend that is enlivening women’s wardrobes.

Men are not left behind either. Menswear was the best-performing category for Nordstrom in the first quarter of the current fiscal year. Even the costume is showing signs of renewed life. Sales of British high-street brand Marks & Spencer Group Plc’s suits rose 39% in May compared with 2019 as its shoppers bought outfits for the upcoming wedding season. Hugo Boss AG’s formal wear business is still below pre-pandemic levels but is recovering, also reflecting the return to offices.

The big question now is: How long will the good times last?

Christmas should be another opportunity to buy clothes, as it is usually the holiday season. This year could be even busier, following omicron’s shutdown in December 2021. And the number of special events — the Wedding Report predicts 2.2 million more U.S. weddings in 2023 — means there should be a tailwind. even next year.

But beyond that, the outlook is more uncertain.

Affluent shoppers are leading the revival in clothing spending. They’re splurging on travel, another major driver of a wardrobe refresh. But they are not immune from external pressures. U.S. luxury is closely tied to stock market fortunes, and the S&P 500 entering a bear market on Monday, as well as the sharp decline in cryptocurrencies, could hurt high-end confidence.

Consumers also have more options for what to spend on. The decline in interest in clothing over the past decade has coincided with an explosion in new technology, restaurants and streaming services. While Instagram was first embraced by fashionistas, it also gave them competition as it showcased travel, dining and beauty items. Experiences will once again compete for a share of people’s wallets, but it’s not clear whether the coming years will see the same level of innovation. If not, that could mean spending more on clothing, shoes and accessories.

Keeping up with new fashion trends is also essential. After restocking their closets this year, consumers will need a new impetus to shop. Petah Marian, founder of consultancy Future Narrative, sees sensibility fashion giving way to darker, sexier styles characterized by corsetry, see-through and leather, as the mood shifts to that of the holidays against a bleaker economic backdrop and geopolitical. Miu Miu’s mini skirt may be a taste of things to come. We’ll soon see if these looks endear themselves to shoppers as well as the array of accessible and undeniable outfits that have characterized this year.

After getting sweatpants wrong forever, retailers should be wary of another wardrobe malfunction.

More from Bloomberg Opinion:

• Target’s oversupply problem should scare all retailers: Andrea Felsted

• Gen Z, Millennials and Gen X All basically agree on WFH: Chris Hughes

• Do computers have feelings? Don’t let Google decide alone: ​​Parmy Olson

This column does not necessarily reflect the opinion of the editorial board or of Bloomberg LP and its owners.

Andrea Felsted is a Bloomberg Opinion columnist covering the consumer goods and retail industry. Previously, she was a reporter for the Financial Times.

More stories like this are available at bloomberg.com/opinion



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