Sportswear and Casuals Provide Market Support Total 2016 women’s clothing store sales continued a declining trend, decreasing 1.5% to $40.41 billion. The decline continued for the first half of 2017, decreasing 2.8% to $19.89 billion, compared to $20.46 billion for the first half of 2016. U.S. womenswear sales are expected to increase 1% for the next several years according to Euromonitor International, with growth in sportswear and comfortable casual clothing, including high-tech fabrics for temperature and moisture control. Sales at department stores decreased 3.8% during the first half of 2017, to $75.61 billion from 2016’s $78.57 billion.

Growth Is Primarily in Off-Price Retailers Walmart was the top apparel retailer during 2016, with sales of $23.3 billion, followed by Macy’s, $22.7 billion; The TJX Companies, $16.7 billion; Kohl’s, $15.7 billion; Target, $14.0 billion; Gap, $12.2 billion; and Nordstrom, $12.1 billion. Off-price department store revenues for 2016 increased 5.3% to $4.0 billion while off-price apparel specialist store revenues increased 6.8% to $44.1 billion. During 2016, T.J. Maxx/Marshalls, part of The TJX Companies, had the largest number of off-price stores, at 2,163; followed by Ross Stores, 1,446; Burlington Coat Factory, 567; Nordstrom Rack, 197; and Saks OFF 5th, 90.

Athleisure Is the Winning Play Sales of sports-inspired clothing are projected to increase 7.1% during 2017, compared to 6.3% during 2016. Outdoor clothing is forecasted to increase +5.9%, compared to +4.7% during 2016 and performance clothing +5.8%, compared to +4.4% during 2016. Sports apparel and footwear accounted for 30.1% of total clothing and footwear sales during 2016, and this share has increased about one-percentage point per year for the past five years. The athleisure trend has spilled into other categories. For example, there are more jeans with yoga pant lining or extreme stretch. The bralette trend combined stretchy and practical sports bras with attractive lace bras.

In-Store Is the In-Place According to TimeTrade’s The State of Retail Report 2017, 47% of surveyed consumers said they valued prompt service the most when shopping in a retail store, followed by personalized experience, 26%, and smart recommendations, 17%. The report also found that 49% of consumers said they are extremely likely to buy when helped by a knowledgeable sales associate, with 39% saying somewhat likely and 12% stating that it doesn’t make a difference. Of those consumers participating in the TimeTrade survey, 75% said that the in-store channel provided good customer service; followed by Internet, 38%; email, 31%; call center, 26%; social media, 24%; mobile/text, 21%; and kiosk, 14%.

Enjoying the Online Clothing Selection According to The NPD Group, sales of apparel online increased 12% during 2016 to $41.4 billion. Aside from actual purchases completed on mobile devices, customers in brick-and-mortar stores spent 40% of their time on their phones. Amazon is the biggest online clothing retailer in the U.S., having sold $20.3 billion worth of apparel during 2016, and is only second to Walmart (8.1%) in its share of the total U.S. apparel market, at 7.4%. Amazon sells more menswear than womenswear. Amazon has increased its share of the overall US apparel market at the expense of Target, Macy’s, Kohl’s, JC Penney and Sears.

Finding a Happy Place Consumers are increasingly savvy, and demand transparency about the sources of their clothes and their production sustainability. Retailers must have this information in hand to share with customers.   Consumers, especially Millennials, value experiences over goods. Retailers with unique in-store experiences, including seamless omnichannel integration, will do well. Online retailers have huge selections, but brick-and-mortar retailers can improve their performance by curating items based on their customers’ lifestyles. Specialty stores will be better able to do this than big box or department stores.

Advertising Strategies Promote your store’s curated selection of unique merchandise and any that is sustainably and/or ethically sourced. Publicize the convenience of shopping with you, including any integrated technology, in-store ordering availability and personal attention from a trained and caring staff. Keep data on customers’ preferences and sizes. Give them incentives to check via their apps. Greet them by name and have information about past purchases.

New Media Strategies Seamlessly integrate social media with purchasing by using third-party apps, such as Like2Buy. Invest in omnichannel strategies to provide your customers with a consistent and convenient shopping experience. Independent women’s clothing stores can succeed against the bigger competition by focusing their social media efforts on the use of Pinterest, showcasing fashion combination, especially with unique merchandise not found in larger stores.