Socks May Be the Gift That Keeps on Giving for Retail
While other apparel categories will likely see a downturn in sales, socks may have what it takes to avoid a holiday slump.
Total dollar sales on all categories are expected to decline 4 percent this season with unit sales also down 2 percent from 2022, but practical apparel gifts are likely to avoid the trend, according to Circana’s Future of Apparel Study. “Despite this overall market decline, we anticipate that socks will fare better than the industry this holiday season,” director and fashion and apparel industry analyst Maria Rugolo said this week.
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Socks have demonstrated staying power, and the proof lies in the historical data. One-quarter of all socks sold last year were bought during November and December, Circana insights showed. In fact, they were the most-gifted apparel item of holiday 2022, making up almost 30 percent of clothing units purchased as presents. According to Rugolo, sock sales will likely continue this winter as worries about inflation linger and shoppers rein in discretionary spending.
There are several characteristics that make socks so attractive to holiday shoppers. “For starters, socks fall into an attractive price-point,” Rugolo said. “As such, they can serve as a standalone gift, be combined with other categories,” boosting gifts of pajamas, sweatpants or other loungewear, or presented alone as price-conscious stocking stuffers. “As households remain price-conscious, items that need to be replaced will quickly become another gift to wrap and place under the tree,” she added.
Because of their relatively low price point, socks tend to be an impulse purchase for many shoppers—especially women. Circana data showed that 40 percent of women’s socks bought last November and December were last-minute grabs on the way to the register. For retailers, this means that strategically placed, eye-catching store displays should be a priority, Rugolo said. “This tactic also bodes well for those last minute-shoppers looking to fulfill gifts but have limited time to wait for online purchase deliveries,” she added.
Socks, sleepwear, tights and other hosiery are projected to maintain flat growth this year, because they’re somewhat less discretionary than other apparel categories. One apparel sector that is expected to see modest growth is underwear, which is likely to notch a 1-percent year-over-year gain. Intimates such bras and lingerie are pegged to see a 1 percent decline—still faring better than general apparel. Sales of bottoms will drop by 3 percent, while dresses will see a 4-percent loss in sales from 2022. “Given their size, what happens in these two categories will greatly impact the holiday season,” Rugolo said. Sales of tops, tailored apparel, outerwear and other seasonal items like swimsuits are also expected to decline.
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