Trendspotting: Are Dress Clothes Making a Comeback?

NewsWire: 4/9/21

• After a year full of sweatpants and T-shirts, the apparel market is starting to show signs of life. Consumers' desire for “real clothes” is rising as Americans prepare for their post-pandemic lives. (The Washington Post)
• NH: The pandemic was a catastrophe for apparel retailers. In April 2020, retail sales for clothing and accessory stores plummeted -84% YoY. While purchases have since increased, sales were still down -11% YoY in the latest February reading. But with the vaccine rollout speeding along and a new round of stimulus checks, the industry may be in for a reprieve.
• A recent NPD survey found that half of Americans plan to buy new clothes in the next few months. Presumably, many of these purchases will be the types of clothing people haven't needed to wear during lockdowns (work clothes, formal attire, and swimsuits). Bonobos, owned by Walmart (WMT), claims that in recent weeks tailored clothing sales have increased roughly +50% per week. And Anthropologie, owned by Urban Outfitters (URBN), claims that dresses now make up seven of their top ten most popular items. 
• That being said, "sweatpants chic" isn't going away. In September, we wrote that the pandemic was accelerating the rise in activewear. (See “The Death of Formal Attire.”) People discovered that when they worked from home, they preferred to wear comfortable clothing. As a result, many forged new path-dependent fashion habits. A survey by NPD asked consumers what they will wear once their offices reopen. Fully 70% responded they would dress “just as or more casually” than before Covid-19.