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In an otherwise bleak picture for apparel, a bright spot has emerged: Americans are finally shedding their loungewear for dressier clothes after a year of coronavirus lockdowns.
The uptick started around Valentine’s Day, as consumers began placing jeans, dresses and casual button-down shirts in their shopping carts for the first time in months, industry executives said.
“We’ve seen a complete change as if someone flipped a light switch,” Chris Riccobono, founder of casual men’s shirt seller Untuckit, told The Post.
The retail chain saw foot traffic rise 23 percent from late February through early March at the 86 stores it operates nationwide, he said. The data suggests that interest in clothing normally worn for a night on the town or to attend a museum is on the rise — and happening “earlier than we had expected,” according to Riccobono.
Retailers like Urban Outfitters, American Eagle and Anthropologie are also reporting signs that more Americans are suddenly eager to ditch the jeggings for real clothes. The trend has retailers cheering a much-needed thaw — even as experts warn that the industry’s road to recovery will likely be long and hard.
Boho-inspired retailer Anthropologie recently said seven of its top 10 online sellers in the last week of February were dresses — a massive change from 2020 when all anyone wanted was a roomy, stretchy outfit for puttering around the house.
“Over the past year, we were lucky if [the top sellers] ]included one or two dresses,” Richard Hayne, chief executive of Urban Outfitters, which owns Anthropologie, said on an earnings call.
Jeans are selling at American Eagle Outfitters again, the company said on a March 3 earnings call, with Chief Executive Jay Schottenstein predicting that demand will only continue to grow as more people get vaccinated.
“I believe that the next few months, things will start getting back to normal,” Schottenstein said. “And then I think going into next year, we’re going to see a boom in this country. It’s going to be like a Roaring ’20s. You’re going to see people getting out.”
Experts warn that the apparel industry — one of the hardest hit during the pandemic, down about 23 percent in 2020 — could take longer than the rest of the country to rebound. McKinsey & Co. forecasted in December that apparel sales will be down 7 to 12 percent in 2021 compared with 2019, with a “modest recovery” possible by the first quarter of 2023.
Craig Johnson, president of retail consultancy Customer Growth Partners, also sees sales declining this year, by about 9 percent, even as people get vaccinated and start returning to work. If the current pace of the recent demand keeps up, the industry — at best — will be able to report on a positive holiday shopping season, he said.
One reason for skepticism on apparel is that spending was in decline pre-pandemic, with more people dressing casually for work and even nights out and spending more of their disposable income on travel, restaurants, concerts and movies.
When the pandemic lifts, apparel will face the same competition — potentially even more so than before. And some people may never go back to work full-time in an office again as corporations seek to shed real estate expenses.
“The future of fashion has never been more uncertain,” said Richard Kestenbaum of Triangle Capital, an investment bank focusing on retail. One reason, he said, is “because we don’t know how people’s lifestyles will change when the pandemic ends in full.”
Still, experts see it as a positive sign that interest in loungewear seems to have peaked in February. Some purchases of dressier clothes are coming from necessity, as some consumers no longer fit in to their pre-pandemic clothing after a year of either sitting around too much or working out more than ever before.
Thomasina Watson, 26, of Houston, is gearing up to buy an entirely new wardrobe after losing 50 pounds during the pandemic, she told The Post.
“I used the pandemic to work on my health and now I’m excited to show off the new me,” said Watson, who signed up for Weight Watchers and started going to a gym after putting on pandemic weight last spring.
“On the top of my shopping list is going-out cute clothes,” she told The Post. “I’m single and excited to start seeing my friends again.”
Regardless of the cause, the uptick has retailers rushing out to capitalize on the change in consumer’s tastes. Even companies that normally focus on leisurewear are pouncing on the opportunity, with Gap-owned Athleta promoting its ankle-length Presidio dress for $98 while discounting some sweatshirts.
“They are putting more of their casual apparel front and center instead of their stretchy clothes,” said retail consultant Kathy Gersch.
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