Navigating Shifts: Insights from Anchin’s Fashion Industry Roundtable

Anchin’s Fashion team members recently hosted a roundtable bringing together industry leaders to discuss the financial trends and challenges that have shaped the fashion industry over the past year. The event provided a collaborative forum for discussing market dynamics, allowing participants to share insights on critical topics—from shifting retail landscapes to the impact that supply chain disruptions and proposed global tariffs will have on the industry. Key points shared by the leaders included:

Navigating Global Challenges

The fashion industry’s reliance on global manufacturing, particularly in China, faces increasing complexities due to the looming threat of tariffs. Leaders shared how their companies are proactively responding to this challenge by accelerating purchasing timelines, diversifying production to alternative regions, and building contingency plans to safeguard operations.

Adapting to Retail Challenges

The market is increasingly pressured by shrinking retail space and tightening consumer demand, forcing businesses to rethink their strategies. Despite the rise of digital commerce—where apparel purchases surged by 6.7% during the 2024 holiday season—physical stores, which only saw a modest increase in sales of 0.2% during the holiday season, remain critical for the fashion industry, serving as key touchpoints for customer engagement and brand visibility.

Macro-economic factors continue to play a pivotal role in shaping retail performance. With consumer spending still under pressure, businesses are grappling with lingering challenges from previous years. One leader highlighted overstock and inventory management concerns, expressing hope for a recovery in consumer demand that could drive sales across the retail landscape. Another participant recounted a recent experience with a reputable retailer in which the BOPIS (Buy Online, Pickup In Store) model failed, as the customer discovered that what they needed was technically in stock but completely inaccessible due to being buried behind piles of inventory.

Building for the Future

Mergers and acquisitions are gaining traction as companies seek to consolidate resources and reinforce their market positions. During the roundtable, participants discussed the notable acquisition of Neiman Marcus by Saks Global, illustrating a growing trend of collaboration and strategic alignment within the industry to navigate challenging market conditions.

The discussion concluded with a reminder that the economic outlook is directly impacting all areas of retail, with the fashion space being no exception. From supply chain disruptions to shifting consumer behaviors, the industry’s challenges require adaptability, innovation, and strategic collaboration to navigate them effectively.

For further details or to discuss strategic approaches for your business as we kick off the new year, please reach out to Marc Federbush, Michael Greenfield, Carolyn Naporlee-Cipolla, or your Anchin Relationship Partner.