Sales mix

To understand how the fashion consumer will change during that time, first it’s important to look at how they are behaving right now. Data from the Office of National Statistics (ONS) shows that clothing stores sales volumes fell by 2.2% in July 2023 from the previous month. Meanwhile, online textile, clothing and footwear stores rose 0.9% in the same period.

Online retail sales as a percentage of total retail sales are not at the high of 37.8% that we saw in January 2021 in the midst of the pandemic. However, they remain markedly above the 19.1% recorded in February 2020, establishing a new normal of around 25% since February 2023, edging up slightly in July to 26.1%, the ONS reports. So what does this tell us about the future?

Frasers Group, which ranked number one on Retail Week’s chart of the UK’s top fashion retailers by 2026, says it is a big believer in the UK high street, highlighting how the group is seeing growing appetite from its customers for in-store retail experiences in the aftermath of the pandemic.

Frasers’ elevation strategy – which was launched in 2019 and aims to raise the perceptions of the retailer in order to attract more high-profile brands to its Sports Direct stores – has enabled the group to meet evolving consumer demands through its investment across its store portfolio; the opening of new innovative and experiential flagships; and the strengthening of brand partnerships to unlock the best product mix and enable brand activations. Retail Week took a deep dive into Frasers Group’s strategy in last month’s second Fashion Forward analysis.

Looking to the future, Frasers has a strong belief that the desire for in-store shopping experiences will continue and that its digital channels will support the retailer in driving consumers into stores.

Consumer trend forecaster WGSN Insight senior strategist Laura Saunter believes that currently consumers’ path to purchase is highly fragmented, with supply chain issues, out-of-stocks, inflationary price hikes and product scarcity creating further obstacles.

Purchasing trends

While consumers may be adopting new shopping behaviours equating to new retail models, it begs the question, what products will they be looking to purchase in 2026?

While there are presently two consumer camps – those who see value as low prices and convenience versus those who see value as a brand that offers good quality and design they love – is this set to change going forward?

Saunter says the unprecedented high cost of living is altering the very definition of ‘value’ in consumers’ minds and, as such, businesses need to rethink their offerings to ensure they can deliver new definitions of value that extend beyond price or brand image.

She adds: “Despite shifting spending priorities, most consumers will put a full halt on discretionary spending, but will continue to buy from companies that they perceive as delivering consistent value.”

And it seems that sustainability and circularity are buzzwords that are going nowhere fast.

Harkin shares that the resale market is growing in volume but also in breadth. And this is backed up by the figures – Statista reports that in 2022 the global market value of second-hand and resale apparel was estimated to be worth $177bn ($142bn). This value is projected to rise rapidly in the coming years, almost doubling in size from 2022 to 2027, reaching a value of $351bn (£283bn). This will not only define how future fashion consumers shop but also how they value their clothing purchases.

Indeed, where it used to be a subsidiary of fashion, it is and will continue to stand on its own. However, agreeing with Saunter, Harkin highlights that while economic appeal and circularity are key drivers, the exclusivity and rarity variables are equally important.