True Fit's cross market apparel, footwear and consumer data platform reported that fashion revenues rose +6% compared to 2022 in December and demand for fit guidance was higher than ever, up 60% in November.
January 11, 2024
‘Muted’ Golden Quarter fashion sales were buoyed by a Black Friday boost to order volumes, while fashion revenues rose +6% compared to 2022 in December, the latest data from True Fit, the leading AI platform that decodes size and fit for consumers and apparel and footwear retailers.
True Fit’s Fashion Genome™, the world’s largest connected data set for apparel and footwear, which brings together the preferences of 82 million active shoppers and 20,000+ brands, showed that while demand (order volumes) fell marginally year-on-year in December, overall demand during Peak Trading was bolstered by Black Friday and Cyber 5, the period which covers Thursday, November 23rd through Cyber Monday, the 27th.
Order volumes of apparel and footwear fell by -7% year-on-year in December. However, those who did place fashion orders were spending more during the Golden Quarter (Q4), with fashion revenues up +10% in October, +12% in November and +6% in December. Meanwhile Average Order Value (AOV) also grew 11% compared to 2022 in Q4. Discounting events, such as Black Friday played a key role in generating demand during Peak Trading; True Fit’s data showed order volumes on the week of Black Friday (w/c November 19th through the 25th) rose +14% year-on-year, as price-sensitive shoppers sought out deals.
Jessica Arredondo Murphy, Co-Founder & COO at True Fit, commented: “Discounting will, of course, remain a key lever in securing share of wallet while household spending remains squeezed. With a muted economic outlook, this will continue past Peak Trading and into 2024, making margin protection a key consideration for retailers in 2024.”
“With our research suggesting the average UK shopper returns almost a quarter of the fashion items they buy, retailers will need to look towards strategies that protect margin to drive growth. This will rely not just on limiting unnecessary fit-related returns, but also on leveraging strategies to retain customers acquired during discounting periods and sales events, turning first time shoppers who have bought at discounted prices into repeat, full-price customers in 2024.”
Demand for fit guidance also rose during Peak Trading, up +60% month-on-month in November and increasing by +122% during BFCM compared to the first week in November. Over BFCM, True Fit saw 2.4 million new shopper registrations, while December saw True Fit registrations rising +20% between the week of Christmas and the last week in December, with December 26th 2023 being the biggest grossing day for new sign-ups.
