The US fashion retail sector in 2025 faces a mix of slow growth and rapid change. Industry analysts expect low single-digit revenue growth, persistent inflation, supply chain uncertainty, and intense price competition. Online shopping now accounts for roughly half of fashion purchases, pushing brands to invest in digital channels.
US fashion sales have stabilized after the post‑COVID bounce. The US apparel market is projected at about $365–370 billion in 2025. E-commerce continues to gain share, while physical stores still maintain a significant portion of sales.
Rising wages and high turnover are major challenges. Retailers are investing in employee retention, training, and flexible scheduling to reduce costs and improve productivity.
Retailers are integrating AI, AR/VR, and mobile apps to improve efficiency and customer experience. Omnichannel strategies and personalized digital marketing are becoming standard practice.
Physical-store visits have not fully recovered across fashion retail. Luxury brands see declines, while off-price/value retailers experience growth. Retailers are enhancing in-store experiences and linking online and offline channels.