Dec 5, 2025
As temperatures chill across much of the country this holiday season, prices for outerwear are climbing steeply, a new report shows. It’s bad news for American shoppers who are already feeling the squeeze of price increases.
An analysis by consulting firm AlixPartners revealed how much prices have increased in 2025 from the previous year across nine different fashion categories. Overall, results show prices have crept up an average of $17 per item (1).
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Jackets and outerwear that have seen the biggest hikes, with prices on average 24% higher — a staggering increase compared to the previous year. Despite this, analysts say consumers have changed their view regarding prices.
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The value of fashion
After outerwear, the AlixPartners analysis found the biggest price increases were for dresses (20%), bags (15%) and accessories and tops (both 11%). Prices for bottoms increased 9%, footwear gained 7%, undergarments rose 4% and swimsuits gained 2%.
What’s behind these price increases? The firm’s report suggests that tariffs and rising costs inevitably played a role.
President Donald Trump began imposing new tariffs on U.S. trading partners in April. As of Oct. 30, Yale’s Budget Lab reports the commodities hardest hit by tariffs have been leather products and apparel, with short-term price increases of 24% for each (2). Textiles have experienced a 15% price increase in the short term as well.
Consumers have accepted there will be price increases, the AlixPartners report says, but what came as a surprise to analysts was that pricing was not their top concern.
Price is always a factor, but the report shows 30% fewer shoppers consider sales and finding the best deal as “very important” to them compared to the previous year. Instead, more focus is being placed on value and quality. It seems consumers want the best bang for their buck.
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Save money on fall and holiday shopping
If you count yourself among those who are worried about rising prices, there are still ways to save.
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It’s still worth searching for deals if there are bigger-ticket items that you need to purchase, from winter coats to holiday gifts. Whether the deals to be had are in-store or online, spending time researching your purchases is a smart way to save.
If higher prices for clothing and accessories are impacting your budget, consider looking into what consignment or thrift stores are in your area. Thrifting for vintage clothing can be a great way to stretch your budget while still dressing in style.
There’s also a proliferation of ways to thrift shop online, including Depop, ThredUp, Etsy, Facebook Marketplace and the old stalwart Ebay. If there is a particular item that you’re searching for, consider visiting these sites for deals before hitting the mall.
If you’d rather not spend a cent, but you could use a wardrobe update, consider hosting a clothing swap with your friends. You could end up with a new winter coat, and at the same time, get rid of some items in your closet that you’ve been meaning to part ways with.
Article sources
We rely only on vetted sources and credible third-party reporting. For details, see our editorial ethics and guidelines.
AlixPartners (1); Yale’s Budget Lab (2)
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Rebecca Payne has more than a decade of experience editing and producing both local and national daily newspapers. She's worked on the Toronto Star, the Globe and Mail, Metro, Canada's National Observer, the Virginian-Pilot and Daily Press.
