Apparel & Beauty

After early-year slowdowns, Gap and Urban Outfitters posted Q3 traffic gains, up 1.4% and 2.4% YoY respectively, reflecting improving consumer demand. Gap’s turnaround and affluent shopper base fueled growth, while Urban’s back-to-school surge lifted visits.

Foot traffic to off-price giants TJX, Burlington, and Ross is growing as budget-conscious consumers flock to value and discovery-driven shopping. With traffic surging across banners, these retailers are well-positioned for a standout holiday season.

Warby Parker continues to prove the power of blending digital fluency with in-store experience. In 2025, visits are up YoY as the brand expands its footprint and deepens engagement through hybrid services that position physical stores as key growth drivers.

Holiday 2025 reveals a split in consumer behavior. Affluent shoppers drive luxury growth, while budget-conscious consumers seek deals. Retail success depends on timing, precision, and understanding shifting priorities.‍

After a post-pandemic boom, beauty’s growth has cooled in 2025 – but new cultural and experiential forces are emerging. Ulta’s K-Beauty World taps into America’s love for Korean skincare, while personalized experiences like Lip Lab are bringing diverse shoppers back to retail.

Dillard’s has managed to outperform the wider department store space in 2025 by sustaining traffic during key months, benefiting from a Sunbelt-heavy footprint, and positioning itself as a weekend destination. Its clearance locations have also thrived, highlighting the enduring importance of value-oriented shopping in a cautious consumer climate.

Gap Inc. is expanding into beauty and accessories to offset apparel’s sameness, capture value-driven and aspirational shoppers, and build brand identity. With overlap in beauty and off-price traffic, success depends on delivering trend-forward products and in-store expertise.

Beauty and fitness retail stores have not only recovered from the pandemic, but significantly surpassed pre-pandemic foot traffic levels. In the fitness space, this growth is in part driven by increased visitor frequency, and in the beauty space, continued growth hinges on the integration of a store experience that complements digital shopping behavior.