Apparel retail product sellouts at a 102% year-on-year increase, with accessories, sneakers and outerwear experiencing the heaviest price reductions
NEW YORK – November 27, 2017 – EDITED, the world’s biggest source of real-time data for brands and retailers, today revealed its latest analysis of online consumer spending this holiday season. It found that 48% of the entire U.S. online apparel retail market was discounted by an average of 46% off over the holidays, compared to 44% of the market with an average of 36% off one year ago. Driven by steep discounts commencing weeks before Thanksgiving, product sellouts increased at an astronomical 102% year-on-year.
Based on an analysis of over 11,000 apparel, footwear and accessory brands, EDITED found that retailers continue to drastically reduce their prices during the holidays. The median price of initial product sellouts was $48.70 in 2017, compared to $50 last year and $57 two years ago. Interestingly, the luxury category saw the highest volume of discounts, with over 26% of products in stock discounted by 26-50%, compared to a mere 24% of premium market items and 20% of mass market items respectively.
“2017 has been a tumultuous year for the retail sector, characterized by record-breaking brick and mortar retail bankruptcies and store closures on the one hand, and skyrocketing e-commerce sales on the other,” said Katie Smith, Retail Analysis & Insights Director at EDITED. “While the retail industry has banked on aggressive discounts weeks before Black Friday and Cyber Monday to boost consumer spending, they need to make sure that this does not sacrifice margins in the long-term.”
Additional findings from EDITED include:
- Earlier discounts this season: While 6% of the apparel retail products sold out the week before Black Friday last year, this figure rose to 7% the week prior Black Friday in 2017, an indication that bargains were available ahead of the holiday season.
- Steep discounts across the board: Almost half (48%) of the US apparel market was discounted over the holiday season, up from 38% the week prior. Accessories are the biggest discounted category, accounting for 35.5% of reductions, followed by tops (21.7%) and footwear (13.3%) respectively.
- Price drops started in September: Retailers averaged 20-30% for initial discounts in September this year, with 42% of initial discounts at 40% or higher. The greatest level of discounts were with jewellery, bags and watches.
- Luxury designer bag price reductions: These holidays, over 23% of luxury handbags were discounted between 40-50% off, up from 30-40% year-on-year. Fendi, Balenciaga, Tom Ford and Prada are some of the top discounted brands.
- Sneakers and outerwear offer great deals: A whopping 47% of sneakers are discounted by an average of 34% off, while 22% of all puffer and quilted jackets are discounted between 60-70% off.
- Top sellout products: The items that sold out the quickest these holidays were accessories (29%), tops (20%), footwear (17%), dresses (8%) and bottoms (8%).
- Top sellout retailers: The retailers with the most product sell outs were Walmart, Farfetch, Shopbop/East Dane, JC Penney and Missguided. Walmart’s discounts are significant in 2017, with product reductions at an average of 54% off.
EDITED’s proprietary software uses artificial intelligence, sophisticated analytics and image and text recognition to understand pricing, discounts, assortments and trends in real-time. EDITED analyzes over 650 million products worldwide, adding more than half a million products each week to give brands and retailers a competitive edge.
EDITED helps the world’s best retailers drive sales by eliminating guesswork. The Retail Decision Platform uses A.I. to optimize buying and merchandising decisions, ensuring retailers get their product and prices right every time. This is how the world’s most innovative retailers stay ahead of the competition; including PUMA, Tommy Hilfiger, Diesel, Ann Taylor and the Arcadia Group. For more information, visit www.edited.com.