The Apparel Market: A Closer Look at Black Friday Discounts

As the holiday shopping season kicked off, savvy shoppers embraced the spirit of the season, drawn by enticing deals. The apparel category is forecasted as the second highest earning category (Source: Statista), expected to generate revenues up to $43.9 billion, closely following consumer electronics. To understand the pricing strategies of top retailers amidst the sale season, DataWeave analyzed the pricing trends for the Apparel category this Black Friday.

We leveraged our AI-powered data platform to analyze the discounting across key retailers. Our analysis focused on the Apparel category, examining how Amazon, Walmart, Target, Saks Fifth Avenue, Nordstrom, Bloomingdales, Neiman Marcus and Macy’s differentiated themselves through their discounts.

Also check out our in-depth insights on discounts and pricing for health & beauty, grocery, and home & furniture categories this Black Friday.

Our Methodology

For this analysis, we tracked the average discounts of apparel products among leading US retailers during the Thanksgiving weekend sale, including Black Friday. Our sample was chosen to encompass the top 500 ranked products in each product subcategory across during the sale.

• Sample size: 37,666 SKUs
• Retailers tracked: Amazon, Walmart, Target, Nordstrom, Macy’s, Bloomingdale’s, Saks Fifth Avenue, Neiman Marcus
• Subcategories reported on: Footwear, Kid’s Clothing, Men’s Clothing, Women’s Clothing, Activewear, Plus Size Clothing, Accessories
• Timeline of analysis: 10 to 29 November 2024

We focused on the top 500 products ranked for each search keyword on each retail site, using targeted terms aligned with categories like “athleisure” and “plus size clothing”. Our methodology distinguished between standard discounts and Black Friday-specific ‘additional discounts’ or price reductions during the sale compared to the week before, to reveal true consumer value.

Key Findings

This year’s fashion discounts were unprecedented. Let’s take a look.

Retailer Level Insights

• Nordstrom leads with the highest average absolute discount at 59%, followed by Saks Fifth Avenue at 35.5% and Bloomingdale’s at 41.5%. Macy’s shows the lowest average discount at 24.1%, while Amazon has an average discount of 30.4%.
• Amazon ranks lower in both average absolute and additional discounts compared to competitors, indicating a more conservative discounting strategy.

Subcategory Analysis

• Kids’ Clothing saw the deep discounts (up to 55% at Nordstrom), reflecting growing pressure on family budgets and heightened competition to attract budget-conscious parents.
• Plus-Size Clothing emerged as a major focus, with Nordstrom leading at 53.22% average absolute discounts, signaling that retailers are increasingly prioritizing size inclusivity and appealing to a broader consumer base.
• Footwear experienced robust discounting, particularly at Bloomingdale’s with 37% average absolute discounts, showing a competitive approach to attract customers looking for seasonal footwear deals.
• Activewear displayed substantial discounts, with Walmart offering up to 41% on average, aligning with the trend of consumers looking for practical and comfortable attire during the winter season.

Brand Level Insights

Apparel brands, meanwhile, also offer telling insights.

• Top Discounting Brands: Aqua leads with an average absolute discount of 44.58%, followed by Boss at 42.33% and Burberry at 37.84%.
• Lowest Discounts: Athletic Works shows the lowest average absolute discount at 31.23%, with a minimal additional discount of 3.73%.
• Competitive Advantage: Brands like Ralph Lauren and Boss show strong discounts, indicating aggressive marketing during the sale.

Share of Search Insights

• Top Gainers: Adidas and Nike each saw an increase of 1.20% in their share of search during Black Friday/Cyber Monday, highlighting their strong brand presence and consumer interest.
• Top Losers: Reebok experienced a sharp decline, losing 2.60% in its share of search, while Levi’s also dropped by 0.60%.
• Search Trends: The data suggests a strong consumer preference for activewear brands like Nike and Adidas and a decline in interest for traditional apparel brands like Levi’s.

Who Offered Most Value This Black Friday

In the previous analysis, we focused on the top 500 products within each subcategory for each retailer, showcasing the discount strategies for their highlighted or featured items. However, to identify which retailer offered the lowest or highest prices for the same set of products, it’s necessary to match items across retailers. For this, we analyzed a separate dataset of 418 matched products across Apparel specific retailers to compare their pricing during Black Friday. This approach provides a clearer picture of price leadership and competitiveness across categories.

Here are the key takeaways from this analysis.

Category-Level Analysis

At the overall category level, Macy’s emerged as the lowest-priced retailer, offering the highest average discount of 28.72%, followed closely by Nordstrom (26.06%). The steep decline in average discounts from Saks Fifth Avenue (14.42%) and Neiman Marcus (7.93%) highlights a clear gap in discounting strategies.

• Macy’s and Nordstrom are aggressively competitive on pricing in the overall apparel category, likely capturing consumer attention with substantial discounts.
• Saks Fifth Avenue and Neiman Marcus may rely more on brand perception and luxury positioning rather than heavy discounting.

Subcategory-Level Analysis

• Neiman Marcus tops the ranking with an impressive 60.85% average discount, outperforming Macy’s (52.86%) and Nordstrom (43.04%) for Men’s Clothing. We see a similar trend with Neiman Marcus offering more value across Women’s Clothing as well, compared to other retailers.
• The competition in footwear was intense, with Neiman Marcus narrowly securing the top spot at 31.03%, slightly ahead of Saks Fifth Avenue (30.28%) and Macy’s (30.07%).
• Saks Fifth Avenue led by a significant margin in the Activewear category, offering 39.89% average discounts, indicating a strong push in this growing segment.
• Macy’s followed at 32.16% in Activewear, while Neiman Marcus and Nordstrom had comparatively lower discounts of 26.40% and 19.52%, respectively.

Brand-Level Analysis

• Kate Spade New York: Neiman Marcus leads with the highest discount of 55.23%, reflecting strong price leadership in premium fashion, closely followed by Saks Fifth Avenue at 51.66%.
• Coach: Neiman Marcus dominates with a significant 75.85% discount, showcasing an aggressive promotional strategy for this luxury brand.
• Spanx: While Neiman Marcus leads with 28.22%, discounts across other retailers like Saks Fifth Avenue, Macy’s, and Nordstrom are clustered within a competitive range of 17–19%.
• Montblanc: Macy’s takes the lead with 20.32%, signaling its competitiveness even in high-end accessories, with Saks Fifth Avenue and Nordstrom closely behind.
• Ugg: Saks Fifth Avenue leads with 31.42%, focusing on maintaining price leadership for this popular brand, while other retailers remain competitive with discounts around 25–30%.

What’s Next

To win over price-conscious shoppers, retailers need to stay competitive and consistently offer the lowest prices.

For a deeper dive into the world of competitive pricing intelligence and to explore how our solutions can benefit apparel retailers and brands, reach out to us today!

Stay tuned to our blog for more insights on different categories this Black Friday and Cyber Monday.

- DataWeave Marketing
6th Dec, 2024

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