Which factors influence growth or decline in the fashion retail industry?
Many different factors may affect the growth or decline of the fashion retail industry. The first is the overall economic cycle. In periods of recession or high unemployment, people have less discretionary income and thus purchase less, purchase less frequently, or shift to a lower price point. The shifting to a lower price point during periods of economic contraction actually offers an opportunity for discounters, consignment stores, and other retail outlets that compete primarily on price. The growth of internet buying has shifted some fashion purchasing from bricks and mortar retail to electronic purchasing, a trend likely to continue.