As Manufacturers, Retailers & Consumers Enter with Caution, What Will 2023 Bring? Rosenthal's Sydnee Breuer Comments for CAN

As inflation soared during 2022, speculation regarding an impending recession was rampant and consumers tightened their belts. Retailers hoped for a blockbuster holiday 2022 sales season to serve as an indicator of a healthier 2023, but projections missed the mark. Holiday 2022 sales totaled $936.3 billion—a 5.3 percent increase over 2021—but couldn’t reach the National Retail Federation’s forecasted growth of between 6 and 8 percent.

Amid the Federal Reserve’s .25 percentage point rate increase on Feb. 1 to between 4.5 percent and 4.75 percent, the U.S. central bank cautiously noted that inflation is slowly easing but emphasized significant challenges remain. With continued supply-chain issues, excess inventory, high customer-return rates and reduced consumer spending on goods, the apparel industry is facing additional challenges during the start of 2023. To prepare for the financial hurdles ahead, California Apparel News asked industry leaders: With lackluster holiday 2022 sales signaling a slowdown in consumer spending on goods, what new challenges can the apparel industry expect, and how can businesses in this sector navigate the resulting economic hurdles?