Consumer Edge (“CE” or the “Company”), the leading provider of global consumer data-driven insights, today released its 2025 State of Retail report, an analysis of U.S. consumer spending trends and brand performance.
As the retail industry navigates an increasingly competitive market, CE’s report provides an in-depth look at the brands experiencing growth, those facing challenges and key trends influencing the retail landscape. While certain categories are outperforming, the data highlights a broader softness in retail spending, with overall growth trailing previous years. The proprietary data also reveals shifting spending patterns across income and age groups.
Among the key findings:
- Fast fashion and resale gain momentum – Budget-conscious shoppers are gravitating toward fast fashion brands Shein and Uniqlo, which continue to outpace H&M and Zara due to aggressive pricing and digital-first strategies. At the same time, secondhand marketplaces, such as Depop and Grailed, are surging as consumers prioritize affordability and sustainability, while Poshmark struggles to keep pace with its competitors’ tech-driven platforms.
- Luxury struggles continue – High-end shoppers are pulling back, leading to sharp declines for single-brand luxury retailers, including Chanel, Gucci and Christian Dior. However, Louis Vuitton and Cartier are proving more resilient, maintaining market share through a mix of strategic price positioning and digital engagement. Meanwhile, multi-brand platforms such as Net-a-Porter and SSENSE continue to lose ground to Farfetch and Mytheresa, as more luxury brands push direct-to-consumer sales.
- Emerging athletic apparel brands shake up legacy players – Emerging brands Vuori and On Running are expanding their footprint, while Nike, Adidas and Under Armour face ongoing challenges. Alo Yoga and JD Sports are also gaining traction among younger consumers.
- Marketing’s influence is undeniable – Nike’s Super Bowl ad provided a short-term sales boost, reinforcing the role of digital marketing and influencer-driven campaigns in shaping brand momentum. SKIMS, which recently partnered with Nike, continues to gain share in the activewear and intimates market.
- Shifts in spending across key demographics – Consumer spending habits are evolving across income and age groups, with Gen Z gravitating toward digital-first brands, Millennials increasing their focus on affordability and high-income shoppers reassessing their luxury purchases.
“What has become clear in the early months of 2025 is that value-driven shopping is reshaping the retail industry,” said Michael Gunther, Vice President, Head of Insights, at Consumer Edge. “Consumers are more intentional with their spending, demanding both value and engagement. Fast fashion and resale are booming not just for their price points but also because they fit today’s digital, social and convenience-driven shopping habits. Meanwhile, luxury brands that don’t evolve are losing ground to more agile competitors. This report serves as a roadmap for navigating the future of retail and staying one step ahead in a rapidly shifting market.”
The 2025 State of Retail report can be downloaded here. Industry professionals attending Shoptalk Spring 2025 in Las Vegas can visit Consumer Edge at Booth 1515 for more insights.
