NEWSWIRE: 9/22/2020
- With offices still closed and events cancelled, sales of suits, dress shirts, and cocktail dresses have tanked while activewear has soared. The surge of interest in sweatpants and other athleisure staples is accelerating a societal shift away from formalwear that’s been underway for years. (CBS News)
- NH: At the peak of lockdown, we wrote that the clothing industry was one of the hardest-hit retail sectors. (See “Why Americans Are Spending More On Home Improvement.”) But now that we have more data, we can identify the relative winners and losers within clothing.
- The biggest loser has been formal wear. According to NPD, between March and July, sales for dresses, suits, dress shirts, and pants were collectively down over 50% from last year. In July, Brooks Brothers declared bankruptcy. And this September, suites have been on discount for an average of 64% off.
- The biggest winner has been activewear. According to NPD, sales of sports bras are up 7%, athletic shorts 3%, and sweatpants 2%. The activewear clothing line Asos saw its sales double between March and June, while their stock (ASOS PLC) is up 90.3% over last year.
- Of course, much of this is because people are staying home and not seeing each other. With few to impress nor a dress-code to abide by, people would rather wear comfortable clothes. Even when coworkers meet virtually on Zoom, Teams, or Skype, they're noticeably less likely to dress for success.
- But the rise of activewear is something I’ve been commenting on for years. (See “Activewear is in Excellent Shape.”) The clothing type uniquely resonates with each generation. Boomers embrace activewear as a representation of the great outdoors and adventure. Gen Xers embrace the clothing as it promises an edge against the competition. And Millennials embrace it as a representation of everyday fitness and achieving personal goals.
- Covid-19 is simply accelerating a life-style choice that has been underway for years.
