Who plans to spend more on apparel in 2027?
- Bernstein surveyed 3150 U.S. shoppers in September 2026. Compared with 2026, among respondents with annual incomes above 50 thousand dollars, more expect to increase spending on clothing, footwear and accessories in 2027 than expect to cut it, with households earning more than 100 thousand dollars showing the strongest intention to spend more.
- Lower-income consumers are more cautious: more expect their spending to decline in 2027 than to increase, mainly because they expect to have less disposable income. Bernstein therefore sees a consumer environment divided by income.
- The share of consumers expecting to spend more rose across every generation compared with the prior year's survey, with younger millennials aged 30 to 37 showing the strongest intention. Among users of GLP-1 drugs, 58% plan to increase apparel spending in 2027, compared with 44% of non-users; more social and travel occasions are among the reasons they mention more often.
Why are customers shifting among off-price retailers?
- Off-price retail remains a common shopping channel, but in 2026 the shopping penetration of TJ Maxx, Marshalls and Ross declined among consumers with annual incomes above 100 thousand dollars. Bernstein believes that full-price retailers' pauses in price increases, stronger promotions and price competition may be drawing some middle- and higher-income customers back.
- While customer reach has contracted slightly, existing customers remain active: among respondents who shopped at off-price stores in the past year, about two-thirds said they were shopping at these stores more often this year.
- Performance also varies among chains. Burlington's shopping penetration rose across several lower- and middle-income groups and was relatively stable among other groups; among those who shopped there in the past year, 66% said they were shopping there more often this year.
Does seeking value mean buying only cheap items?
- Fit, quality and style are the most important purchase factors across income and age groups, ranking above low prices, promotions and brand names. Even among lower-income consumers, quality matters more than low prices.
- About four in five respondents are willing to pay full price for items they like, but this willingness has not strengthened across the board: compared with 2025, it was broadly stable among lower- and middle-income groups and declined among higher-income groups.
- Consumers also care more about keeping their wardrobes fresh: 51% of respondents do not want to wear the same outfit repeatedly; the figure is 57% for Gen Z, higher than 47% for Gen X. Bernstein believes affordable brands and retailers that continually offer new products have a better chance of attracting younger customers.
With shopping led by online channels, what roles do physical stores and social platforms play?
- About 68% of respondents primarily buy clothing, footwear and accessories online, broadly unchanged from a year earlier. But among those earning less than 50 thousand dollars a year, about 40% primarily shop in physical stores, higher than the 25% to 29% among those earning more than 75 thousand dollars a year.
- Social platforms influence how younger consumers discover and try brands: 63% of Gen Z and 64% of younger millennials said that content about a brand posted by an account they follow would make them more likely to try it; the figure for Gen X was 39%.
- Social platforms also facilitate shopping: 48% of respondents have used TikTok Shop, including 23% who use it frequently. The shares who have used it were 57% among Gen Z and 54% among younger millennials.