BUSINESS: Research + Stats Fashion Industry Is Expected to Reach $494 Billion in Retail Sales By Staff Wednesday, March 22, 2023 11:03 AM The U.S. fashion industry is growing at a slower rate. A new report from Oberlo found that the fashion industry grew 4.5 percent between 2022 and the beginning of 2023 and is expected to reach $494 billion in retail sales. These figures are down from 2022, where the industry grew at a rate of 8.3 percent. This was down from the year before, where growth reached 18.4 percent, the fastest growth rate between 2019 and 2023. It is believed the surge is a result of the industry recovering from the pandemic, where sales fell by 21.9 percent in 2020, marking a $100 billion loss from the year before. The pandemic had a significant impact on the industry’s growth rate and sales figures, and also resulted in the closure of brick-and-mortar locations, pushing sales online. Consumers also spent less, as people exited the workforce and businesses closed. Since then, sales have rebounded to over $400 billion since 2021. The U.S. fashion industry is the fourth-fastest growing ecommerce category in the U.S. with sales forecast to grow by 13.8 percent in 2023, however, online sales are expected to fall slightly between 2024 and 2025, while still set to outpace overall e-commerce sales.