Fashion retailers in the USA record an unexpected increase in sales, attributed to a new trend: millions of Americans who have lost weight through medications like Ozempic are now purchasing new, smaller clothing items.
The medication Ozempic, originally developed for the treatment of diabetes, has proven to be extremely effective for weight loss and sparked significant demand for new clothing sizes. This has led fashion retailers like Lafayette 148 and Rent the Runway to see increased demand for smaller sizes and form-fitting clothing.
According to Deirdre Quinn, CEO of Lafayette 148, about 5% of her customers buy new outfits because they have lost weight. This not only leads to higher sales but also saves the company costs, as smaller sizes require less fabric. At Rent the Runway, more customers than ever before in the past 15 years are switching to smaller sizes, reports CEO Jennifer Hyman. These customers are also more likely to experiment with bolder styles such as cutouts and form-fitting designs.
A example of this trend is Maggie Rezek, who, after losing 60 pounds thanks to the drug Semaglutide, the active ingredient in Ozempic, has completely renewed her wardrobe. Previously, she hid her excess weight in loose shirts and pants; now she wears crop tops and short jeans. "I used to be insecure about my body," says Rezek, "now I feel more comfortable in my clothes and have more self-confidence.
A Gallup survey in March found that 15.5 million Americans, or 6% of adults, have already tried injectable weight loss medications. Nearly three-quarters of current users report that these medications are very effective for weight loss.
This trend is leading to increased demand for smaller clothing sizes. For example, the company Amarra, which sells evening gowns and formal wear, has seen a decline in demand for larger sizes and an increase in demand for smaller sizes. This has prompted the company to adjust its designs by replacing zippers with lace-up corsets, which better accommodate changing body measurements.
The clothing market could experience a much-needed boost from this trend. According to the market research firm Circana, clothing sales fell by 4% in the twelve months leading up to April compared to the previous year. The demand for smaller sizes could help offset this decline.
AllStar Logo, a supplier of polo shirts and fleece jackets for large companies, also reports a decrease in demand for the largest sizes. According to sales manager Edmond Moss, the demand for the largest sizes has decreased by half, while smaller sizes are increasingly in demand.
While some companies benefit from the increased demand for smaller sizes, others are concerned about the potential impact on the plus-size market. Doug Wood, CEO of Tommy Bahama, fears that the weight loss of many people could negatively affect the demand for the 'Big & Tall' collection for very tall men.
For many customers, weight loss means a complete overhaul of their wardrobe. Jillian Sterba, who had gained weight from size 6 to size 10 after the birth of her child and lost weight back to size 4 through Semaglutide, reports that almost half of her old clothes no longer fit. She has bought new jeans, tops, and underwear but is keeping 80% of her old clothes in case she regains the weight.
This trend shows how changes in the healthcare industry can directly impact retail. With the increasing prevalence of weight loss drugs like Ozempic, fashion retailers could see even more sales increases in the future.
