SHEIN reported its first results as a public company this week, with profitability under pressure and sales declining in both the U.S. and Europe.
I joined Steve Lai on BBC News to discuss what Consumer Edge data tells us about the consumer behavior underneath those results.
Shein became a leader in U.S. fast fashion and one of the largest individual players in the broader apparel market. But its market position has now declined year over year for several consecutive quarters, with some of the greatest pressure coming from younger consumers.
Importantly, that isn’t true across fast fashion. UNIQLO continues to take share of the apparel and accessories market as it pursues its U.S. expansion. Fashion Nova is gaining ground as well, while ZARA has been winning with some consumer segments.
But one of the most interesting things we found in the U.S. was what happened to the apparel wallets of Shein shoppers. Consumers who stopped shopping at Shein shifted spending toward resale, including platforms and retailers such as Depop, Poshmark, Goodwill and Vinted. Consumers who continued shopping at Shein were spreading more of their apparel spending elsewhere, with resale taking a larger piece.
Notably, this isn’t simply a Gen Z phenomenon. The shift toward resale shows up across age and income groups, including older and higher-income consumers. Consumers are still spending on apparel, but they’re increasingly selective about where they see value, and resale is one of the clearest beneficiaries.
How business leaders use this data
- Apparel brand teams track their share of the apparel wallet by age group every quarter, instead of waiting for a competitor’s reported results to see who is gaining.
- Strategy teams follow where a competitor’s lapsed shoppers take their spend, and size which brands and channels are winning those customers.
- Merchandising and marketing teams measure cross-shop with resale platforms by income tier to see where value-driven shoppers are moving next.
Notes: Consumer Edge U.S. credit and debit card data. Share is measured within the Consumer Edge Apparel, Accessories & Footwear industry; 2026Q3 is quarter-to-date through September 2026. Retained Shein shoppers made at least one Shein purchase in both Sep 2024-Aug 2025 and Sep 2025-Aug 2026; lapsed shoppers purchased in the first period only. Resale includes Depop, Poshmark, Goodwill and Vinted. New-to-resale index compares lapsed Shein shoppers’ rate of first-time resale purchases to the overall panel. Age and income cuts cover cardholders with a known attribute.
