U.S. consumers already own so many clothes that each new item they purchase doesn't spark happiness.
"The world's leading dozen listed apparel retailers have, on average, seen earnings downgrades of almost 40% since the beginning of 2016," he wrote, citing Datastream and Morgan Stanley data. "When combined with the ongoing challenges posed by online channel shift we believe that this could make for a very difficult backdrop for the apparel retail industry. Not just for this year, or next, but indefinitely.
Instead, it's because clothing has become so cheap — which led consumers to purchase in huge quantities. According to data from Kantar, a consumer in the U.S. purchases around 65 items of clothing a year. A U.K. consumer buys around 50 a year. Clothing sales in developed countries have been stagnant or declining. According to Roddell, that means the only way apparel markets can grow is if clothing becomes more expensive — but that's also unlikely to happen.
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