Demand for clothing is driven by consumer income and fashion trends. The profitability of individual companies depends heavily on effective merchandising and marketing. Large companies can offer wide selections of clothing and have advantages in purchasing, distribution, and marketing. Small stores can compete by offering unique merchandise, targeting a specific demographic, providing superior customer service, or serving a local market.
The clothing industry is big business. Worldwide, the total retail clothing and footwear market is worth more than $1.7 trillion. In the U.S., retail sales at clothing, shoes, and accessories stores in the U.S. totaled $225.7 billion, according to the U.S. Census Bureau. In recent years, total annual U.S. retail sales have increased an average of 4.5%, according to the U.S. Census Bureau. 2017 is expected to be a stable year for apparel retail with expected sales growth of 6-8%, led primarily by direct-to-consumer channels and international growth.
The clothing industry consists of product categories that include everything from basics, such as socks and underwear, to luxury items, such as cashmere sweaters and designer handbags. It is estimated that women's apparel accounts for about half of industry demand. Women's fashion represents the cornerstone of apparel industries, as the majority of luxury fashion is designed for women. Other major products for clothing businesses include men's clothing (accounting for about 20% of industry revenue) and clothing for children and infants (about 10%). Other sources of revenue include accessories such as hats, caps, jewelry, gloves, handbags, ties, wigs, and belts.
A substantial number of Americans run their own clothing stores. According to data from the U.S. Census Bureau, two-thirds of all clothing retail firms in the U.S. are sole proprietorships. Clothing boutique sales are affected by disposable income and consumer confidence levels.
If you are considering the purchase of a clothing business, Transworld is committed to ensuring the best deal for all parties involved. Transworld's business advisors will meet with each prospective clothing business buyer to determine your abilities and interests, educate you about the search and buying process, and connect you with clothing business sellers that match your criteria.
If interested in selling your clothing business, Transworld's experienced advisors will offer you full marketing support, including expert valuation and strict confidentiality, as they introduce you to suitable prospective buyers. Transworld will be involved at all stages until the business changes hands and even beyond.
Click here to find our listings of clothing businesses for sale. Each profile provides a detailed description of each clothing business for sale, along with some basic business information, such as location, price, down payment, and sellers discretionary earnings.
