Overall apparel spending is expected to grow, but plus-size chains feel near-term pain.

US fashion ecommerce is maturing just as AI, social commerce, and resale gain traction. Slower growth and costly returns are raising the stakes, reshaping how consumers discover, decide, and buy.

As consumers grow more comfortable with using AI, retail industry leaders see 2026 as a pivotal year in shaping how the emerging technology disrupts the way people shop.

A growing number of high-end and mass-market brands are thriving even as they reduce promotions to protect margins and strengthen brand equity. Victoria’s Secret delivered its strongest sales growth in four years through more targeted discounting, while On Holding and Ralph Lauren posted standout revenue and EPS gains by preserving premium pricing and elevating brand perception. The trend extends beyond retail: although Cava recently cut its sales outlook, it is still avoiding discounts to protect a value proposition rooted in quality and experience. Together, these strategies reflect a shift away from competing primarily on price.

In earnings calls from retail leaders, one of the biggest shared signals is that AI shopping assistants are becoming the new front door of the customer journey. Whether the retailer is in grocery, fashion, or general merchandise, conversational search is now the organizing principle for discovery.

Ralph Lauren and Tapestry reported standout Q3 results as the strength of their brands and product assortments helped insulate them from broader weaknesses in the luxury and apparel industry. Their successes show that demand for accessible luxury is recovering. But they also demonstrate the challenge of appealing to consumers’ lofty expectations. With more immediate concerns like grocery prices and labor market uncertainty pressuring discretionary purchases, companies need to be laser-focused on delivering high-quality, on-trend assortments.

Amid a challenging economic climate, luxury brands seek new ways to prove value to and win over young shoppers. By serving food and drink alongside products, retailers are turning stores into places where consumers can linger, connect, and spend. Coach’s coffee strategy is a prime example.

Ralph Lauren is expanding its hospitality empire, with plans to open a new Polo Bar restaurant in London in 2028. That outpost will join others in New York, Milan, Chicago, Chengdu, and Paris. With luxury sales under pressure as aspirational customers pull back, hospitality concepts are an opportunity for brands to keep shoppers engaged and maintain heat. By deliberately courting social media attention, and using tactics like exclusive merchandise to build excitement, brands can create more opportunities for customers to spend time (and money) on their properties.

Tapestry and Ralph Lauren are planning for growth in an otherwise tepid luxury market. Tapestry expects mid-single-digit revenue growth in fiscal 2027 and 2028. Longer term, it aims to turn Coach into a $10 billion brand, up from $5.6 billion last year. Ralph Lauren also has its sights on becoming a $10 billion brand by decade’s end. Its latest forecast calls for mid-single-digit sales growth over the next three years—a target executives acknowledged as conservative but aligned with its goal of sustainable expansion. With pricing power waning, storytelling and product innovation are crucial for reengaging disaffected consumers. Tapestry and Ralph Lauren show that combining brand resonance, strong core products with a disciplined pricing strategy, and an inclusive approach to luxury can deliver sustainable growth in a challenging market.

Companies are beginning to feel the sting of anti-US boycotts. Anti-US sentiment is especially visible in Canada, where consumers are directing more spending to local retailers and brands—and making fewer visits south of the border. Still, while Canadians are using boycotts to push back against US trade policy, there are few signs elsewhere that anti-American sentiment is driving shoppers away from US brands.

Ralph Lauren posted higher-than-expected quarterly results and raised its full-year revenue outlook, though it warned that tariffs could pressure consumer spending in the second half. Amid economic uncertainty, Ralph Lauren’s performance highlights the resilience of brands that sit at the intersection of aspiration and accessibility. The company appears better positioned than some of its luxury peers to weather volatility. Its quarterly results offer a blueprint for its retail peers, showing the value of a diversified supply chain and brand equity over aggressive discounting and heavy dependence on a single market.

Ralph Lauren and Canada Goose defied luxury slowdown in Q1: But tariffs and uncertainty could reverse that momentum.

Refined luxury thrived during the holidays: Shoppers splurged on timeless pieces from Coach and Ralph Lauren but held back on bolder, flashier styles from Versace and Michael Kors.

Infinite Reality’s latest move suggests the metaverse isn’t done just yet: The company is buying virtual shopping platform Obsess in a move aimed at reimagining how brands connect with consumers online.

Ralph Lauren and Tapestry sidestep luxury slowdown: The two companies beat expectations thanks to brand elevation efforts that resulted in higher AUR.

On today's podcast episode, in our "Retail Me This, Retail Me That" segment, we discuss in-store retail media: what's holding it back, cooler screens and smart carts impact, and what digital advertising looks like outside the store. Then, for "Pop-Up Rankings," we rank the top three heritage brands that have found a way to become cool again. Join our analyst Sara Lebow as she hosts analysts Sky Canaves and Zak Stambor.

The average price of Ralph Lauren products is up 80% since 2018: The apparel company is focused on elevating its brand perception.

Pinduoduo owner PDD’s growth slowed in Q4: That reflects a sluggish retail landscape in China, which is why the company aims to diversify its revenue streams.

China faces a difficult road to recovery: Despite some encouraging signs of recovering consumer demand, falling exports and a property slump could weigh on confidence.

The personal luxury goods sector is riding a wave of high demand in the US and China, buoyed by wealthier consumers who are relatively immune to the impact of price increases. But brands will need to appeal to the rising Gen Z consumer, as well as strengthen loyalty among their most important customers.