The Big Picture
Retail closed out the holiday season on a strong note. Overall sales jumped 1.2% month-over-month and finished 3.5% higher than last year. According to the National Retail Federation, much of that momentum came from clothing and sporting goods.

Inflation remains a mixed backdrop. December numbers show prices up 2.7% year-over-year. Not surprisingly, consumer confidence dipped slightly as retailers and shoppers alike head into a year with a less predictable outlook.

December Sales

Our client stores posted steady December growth of 2% overall. While that’s a slowdown from the double-digit gains seen earlier in the fall, it largely reflects strong sell-through of new inventory rather than waning demand.

— Menswear and women’s wear both increased 2%

— Men’s apparel stood out, up 6% overall

— Suits surged 14%, driven by formal occasions and holiday events

— Women’s dresses rebounded 9%, reversing several flat seasons

In short, shoppers showed up when the product aligned with real-life moments and events.

Planning Ahead: Lessons for 2026

As you head to market for Fall 2026, now is the time to ask a critical question:

Where did you miss business last season?

By December, many stores had already sold through core apparel, while customers shifted their spending toward lifestyle and giftable categories—think leather goods, premium candles, bar accessories, and home items.

If those categories were light or missing, you may have left sales on the table.

A smart move for the coming year:

— Review your top-performing home, lifestyle, and gift classes

— Consider investing 5–10% more in these areas to extend momentum through the holidays

Looking ahead to spring, don’t be afraid to bring goods in a bit earlier. Pre-fall demand surprised many retailers this year, and we expect pre-spring to offer similar opportunities, even within a shorter selling window.

We also had a relatively weak spring season last year, so the numbers should be easy to beat. The numbers will be harder to beat in fall.

Blacks’ Bottom Line
January is the ideal moment to pinpoint where you missed sales last year. Reallocating open-to-buy and moving up delivery dates—even slightly—can have an outsized impact on your results.