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| Clothing, footwear and jewelry posted some of the biggest spending growth on major credit card networks over the holidays. |
Nearly Five Years After the Pandemic, Many Are Still Refreshing Their Covid-Era Closets
Nearly five years since the onset of the pandemic, many people are still in the process of updating their wardrobes from the Covid era. The holiday season provided an opportunity for some to take advantage of competitive discounts, purchasing items for themselves alongside gifts for others.
“This was a very solid holiday season for retailers,” said Neil Saunders, managing director of the retail consultancy GlobalData. “Consumers dug deep and boosted spending. Retailers also worked hard to secure trade by offering discounts that were slightly more generous than last year.”
Clothing, footwear, and jewelry saw significant spending growth, according to recent data from Visa and Mastercard. Industry experts attribute this to employers like Amazon and JPMorgan mandating employees to return to the office. During the pandemic, many became accustomed to attending meetings in sweatpants, at least part of the time.
“I’ve seen a major uptick in clients looking for back-to-the-office outfits,” said Avri Lauren, a stylist based in Illinois. She estimated that over a quarter of her clients now seek help assembling professional wardrobes, a trend that has accelerated over the past four months.
“Now that they’re returning to the office, they feel like they’ve lost their style identity,” Lauren noted. Her clients are willing to invest in staples they can wear frequently and show a strong interest in brands emphasizing quality and sustainability, such as Everlane and Reformation.
Retail analyst Jane Hali observed that brands are responding to a surge in demand for replacement garments as customers rebuild their wardrobes for work and social occasions. Many brands are promoting versatile pieces that can transition across settings, moving beyond typical staples like basic sweaters.
Amazon and JPMorgan have been among the latest large companies to enforce return-to-office policies, with Amazon’s five-day requirement starting this month and JPMorgan reportedly following suit. Other companies, including Citigroup, Walmart, and UPS, have tightened in-office mandates over the past year.
However, the push for in-office work has met resistance. Some employees visit the office briefly to clock in, spending much of their workday at home. Even shoppers refreshing their work wardrobes appear cautious, making purchases one or two items at a time.
“Underneath the headline numbers, the results were somewhat mixed,” Saunders said. “Not every retailer found success over the holidays, and we will see polarized earnings when retailers report next month.”
Despite cautious optimism from major retailers like Gap, which raised its annual outlook after a strong start to the season, and Nordstrom, which reported increased sales of clothing and shoes under $100, retailers tread carefully to remain competitive. Many have avoided significant price increases to prevent losing customers to budget-friendly online rivals like Shein, absorbing supply chain costs or compromising on quality to protect margins.
Clothing prices have remained relatively stable despite inflation, rising just 1.1% from November 2023 to November 2024, with footwear increasing by only 0.7%. This stability is in contrast to the overall consumer price increase of 2.7%.
Consumers are also embracing new shopping methods, with “buy now, pay later” (BNPL) installment loans proving particularly popular. Clothing topped Afterpay’s spending categories from November 1 to December 31, while fashion and beauty ranked second in sales volume for Affirm, behind general merchandise. Affirm reported a 15% increase in this category, surpassing electronics and travel.
These gains reflect not only the widespread availability of BNPL services but also growing consumer comfort with ordering garments online without trying them on.
“There are so many items you can’t find in stores,” Hali noted. “Footwear on sale at Nordstrom, for instance, might be shipped directly from the manufacturer without the usual Nordstrom packaging.”
The expanding array of digital shopping options—both in product selection and payment methods—is increasingly driving consumers to begin their shopping journeys online.
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