Circana Reports on the State of the Market
By Beth Goldstein, footwear and accessories industry advisor at Circana.
Illustration by Andrea Byrne
The U.S. accessories industry* experienced a -1% decrease in both unit and dollar sales during the 12 months ending May 2024, versus the prior year. This means that the average price growth we have seen since 2021 has flattened out, due to stabilizing MSRPs, increased promotional activity, as well as consumers trading down to less expensive options in some categories due to pressure on their wallets and shifting priorities.
As part of the Accessories Council Business Workshop last month, Circana’s chief retail industry advisor and my colleague Marshal Cohen, kicked off the event with an insightful discussion around the consumer trends affecting
retail. Here are some of the key takeaways that accessories brands, manufacturers, and retailers need to consider as they plan for the year ahead.
Prioritization remains a top influencer for consumers in terms of how they shop, and what they buy. Consumers’ wallets continue to feel the pressure of higher prices and more expenses across the board, from grocery bills and other basic necessities to credit card debt and student loan repayments.
These circumstances are swathed by uncertainties tied to the economy and political landscape, as well as global conflicts and weather-related disasters. The current conditions further complicate consumer behavior, and discretionary spending on categories like accessories will feel the impact. Brands and retailers can expect to continue to work very hard to prove value and give consumers a reason to spend.
Consumers are shopping according to their own calendars — not retail’s. We saw this scene play out in the back-to-school shopping results. The nature of the back-to-school season has changed. Traditionally it was an opportunity to stock up on fall essentials for the whole family, but today it’s about getting the kids what they need to start school. Weather fluctuations and tighter budgets are causing consumers to focus on what they need in the moment, rather than buying ahead of season, despite promotions that seem to start earlier and earlier. We’ll see the same thing during this holiday shopping season, which means that the accessories industry needs to re-evaluate the flow of merchandise so that it feels fresh and new when the consumer wants it.
To read the rest of the article and see their 2024 reports head to the recent issue HERE.