Author: Victor Texcucano, Content Coordinator, RAB
Tariffs, inflation and changing consumer preferences mean the clothing/apparel industry is in a state of ups and downs. With the holiday season here, retailer marketing is in full swing.
While recent economic data has been mixed, retail sales grew in October as consumers prepare for the holiday season. According to the National Retail Association (NRF), retail spending has been solid lately, as wage growth has been outpacing inflation and unemployment levels have remained historically low.
The NRF expects continued momentum through the holidays while consumers focus on their families and stretching family budgets.
Circana data confirms consumers’ worries about economic uncertainty, with 80% of consumers expecting higher prices on holiday goods due to tariffs and other economic factors. Most holiday shoppers plan to spend about the same as in 2024, but there is an increase in those planning on spending more.
Salsify says that Gen Zers (29%) and millennials (25%) are most likely to increase their holiday spending compared to 2024, while a lower number of Gen Xers (16%) and baby boomers (17%) plan to do the same.
The average consumer plans to spend $1,552 (down 5% from 2024), according to PwC. Retailers hoping to have a successful holiday season should make plans to stand out and entice holiday shoppers by communicating the potential savings that will stretch their dollars by shopping at their locations.
The positive news is that clothing/apparel will be the largest retail segment for the 2025 holiday season. Fifty-four percent of holiday shoppers plan to gift clothing/apparel. Other segments are not as high on the shopping list. Personal care and beauty (47%) and electronics (42%) come in lower, per Salsify.
Broadcast radio is an excellent way to reach shoppers that are looking for clothing. According to MRI-Simmons, 89% of radio listeners have purchased items at department stores or clothing stores in the last 30 days. Radio listeners spend big on clothing. Sixty-three percent of radio listeners have spent $100+ on men’s or women’s clothing, accessories or shoes in the last 12 months and 64% of those who have spent $100+ on children’s clothing in the last six months also listen to radio.
Consumers today are thrifty and want to save money any way they can. Along with savings, loyalty/rewards programs by retailers will drive shopper traffic and purchase. The best customer loyalty programs boost not only repeat purchases, but also increase average spend and turn customers into loyal brand fans, per Salsify.
Loyalty/reward programs are a win-win situation. Customers win by getting discounts and rewards while brands win by creating loyal customers who are sure to become repeat customers and possibly spread the word to friends and family.
These programs matter and are important to radio listeners. Sixty-one percent of consumers enrolled in a loyalty/rewards program at department stores or clothing stores and 62% of consumers who say they are loyal to certain fashion brands listen to broadcast radio, per MRI-Simmons.
The holiday season is here. As shoppers work to find the perfect and last-minute gift, retailers can reach them while they are on the go via radio. As a local medium, retailers should highlight deals and clothing gift ideas – all available to shoppers in their neighborhoods.
This post was originally published on Radio Matters.