Internal card data from Bank of America finds value apparel increasing nearly four percent for Gen Z and Millennial consumers amid inflation.
U.S. consumers have been “trading down” across all categories since inflation hit record highs with many previously loyal customers forgoing shopping at their favorite stores and retailers when discounts were offered elsewhere or choosing to purchase alternate brands with lower prices. It’s a, and one that, according to data from Bank of America, is leading to more value-seeking when it comes to apparel purchases.
In Bank of America’s latest consumer study, the company’s expert economists used collected data to better understand how three tiers of apparel have been, and are being impacted by consumers’ shifting shopping behaviors brought on by the current economic landscape. Overall, Bank of America’s internal card data suggests that since July 2022 as U.S. consumers shop, spending at discount retailers has grown faster thanU.S.
Compared to other generations, Millennials and Gen Z consumers were revealed as the most likely to spend more on value apparel. While the data suggests that wearing more comfortable clothing while working from home has played a part, a perhaps more notable factor, is that these younger consumers are simply earning less. At the same time, fast fashion provides a lower-cost option to keep up with trends.
Unsurprisingly, lower-income households were found to also be driving spending on value apparel over premium and standard apparel retailers. Middle and higher-income consumers, however, also exhibited a shift away from premium apparel purchases beginning in early 2021, though the company’s report said this was likely due to a change in how people are dressing over financial strain.
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