The global fashion and luxury retail sectors are entering a new phase of low growth amid ongoing macroeconomic uncertainty, which is expected to affect the behavior of value-conscious consumers. China saw a rebound of fashion retail sales in 2023, but that may slow amid lower projections for GDP and disposable income growth compared with the past two years. Meanwhile, luxury retail sales in Europe and the United States are expected to persist in the low single digits, note McKinsey’s Anita Balchandani, David Barrelet, Felix Rölkens, Gemma D’Auria, and coauthors.
To read the article, see “The State of Fashion 2026: When the rules change,” November 17, 2025.