The apparel retailing industry over the next five years, its retail conditions are expected to improve as per-capita disposable income rises and consumer confidence recovers, but e-commerce and online shopping is expected to mitigate industry gains and flourish more profits. Therefore the industry establishments are expected to focus on providing more online options to customers to compete with major retailers and e-commerce stores. International competition will also continue to constrain industry growth, as online shoppers will have increasing access to boutique clothing in international markets. Nonetheless, the number of firms in the industry is expected to grow over the five years until 2018 due to the rising demand from households. Women's clothing, accounting for 59.1% of industry revenue, nearly doubles the share of men's apparel, which brings in 33.4% of revenue. Women purchase a wider variety of items to suit different occasions. Formal wear includes pieces such as suits, blazers, tailored pants and coats; casual clothes include jeans, knit and woven shirts and shorts. Casual clothes are more widely worn since their acceptance is nearly universal, especially as office attire policies have become more lax over the past decade. The clothing Boutiques industry comprises small retail stores that offer only a limited range of apparel and accessories. By nature, the industry is highly fragmented because retailers are defined as having only one establishment. Clothing boutiques typically cater to high-end or niche markets and are reliant on strong conditions for consumers. Therefore, the onset of the recession caused the industry to falter as declining per capita disposable income and plummeting consumer confidence precipitated a contraction in consumer discretionary spending on boutique clothing. Industry revenue fell 5.2% in 2009 as consumers reeled in spending or shifted purchases to relatively inexpensive retailers. However, conditions began to improve in 2010 and industry revenue slowly recovered.

 

Lately the internet usage has also opened up international markets for consumers, who can now browse overseas wares and order clothing. Apparel retailer activities are not limited to just sales but also involve marketing, merchandising, inventory and customer service. Factors that are fueling the industry revolve around fashion and consumer income which have kept changing from time to time as usual and for that to be catered the companies have ranged in size from small to large, with the former concentrating their efforts on exclusive products and marketing efforts to a particular demographic, while the latter carry more diverse clothing ranges and benefit from economies of scale regarding distribution, advertising and purchasing. The apparel retail industry is heavy on labor and includes all sizes of retailers from discount stores to department stores and other types such as those selling their clothing online and through catalogs.  As a result, industry revenue is only expected to grow at an average annual rate of 0.6% to the value of $25.2 billion over the five years until 2013. The apparel retailing industry is expected to perform better after 2013, and the industry revenue is forecast to expand 1.9% because of burgeoning retail conditions as unemployment falls and consumer outlook improves.

Major players in the apparel retailing industry include Zara, H&M, The Gap, TJX, Pantaloons, Maxx, Ralph Lauren, and Macy's.