The latest Consumer Sentiment Index research reveals a complete shift in sentiment and shopping preferences amid ongoing inflation and tariffs
New York, NY, October 22, 2025 – Retail has entered a new era defined by more discerning shoppers and higher expectations. New fashion and beauty Consumer Sentiment Index (CSI) reports from AlixPartners reveal that consumers are reshaping how brands must deliver value, connection, and credibility. Constant price chatter and inconsistency have left shoppers fatigued—they're seeking simple, transparent, and reliable pricing. They are returning to physical stores and to brands that offer authenticity, expertise, and experiences that feel worth their time and money.
Price has lost its position as the number one factor in consumer purchase decisions compared to last year's report, despite persistent inflation and tariff pressures driving costs higher. The results point to a deeper behavioral shift in how shoppers evaluate spending, signaling that emotional connection to the product and perceived worth are overtaking price sensitivity as key purchase drivers.
Consumers Demand 'Value Over Price' in Fashion
According to Fashion: In Flux, consumers are back in stores, but with sharper scrutiny. In-store traffic is up 4%, yet basket size and dwell time are down, highlighting that while shoppers are ready to re-engage, they are unwilling to compromise on experience or substance.
"The core foundation of fashion retail is being tested by consumers who are both frustrated and increasingly fickle," said Sonia Lapinsky, the Global Leader of Fashion Retail at AlixPartners. "Shoppers are tired of decoding pricing games, tired of lackluster service, and tired of doing the work. The industry has turned what should be inspiring into something transactional. Consumers still want value—but today, value means quality, service, and authenticity. Retailers that understand and deliver on this new definition have a real opportunity to rebuild lasting loyalty."
Although consumers increasingly say that price is less of a deciding factor, the luxury sector serves as a cautionary tale—demonstrating how brands that push pricing too far can quickly reignite price sensitivity. The report highlights an opportunity for retailers to take targeted price increases in select categories—but only with the right analytics and strategic discipline to guide those decisions, especially in areas like outerwear, where prices have already risen by as much as 24%.
Brand identity has emerged as a powerful purchase driver, with 43% of footwear consumers now ranking "a clear brand identity I connect to" as essential—up from 21% last year. Nearly half of athletic footwear shoppers say they'll cut back elsewhere to afford emotionally resonant brands. Yet preferences remain capricious. While Nike still leads overall, Reebok and ON gained ground. Among Gen Z, loyalties shifted: Adidas overtook Nike for the top spot, and Skechers climbed to fourth behind New Balance.
The preference for connection over cost is reshaping the competitive landscape, especially in specialty retail, where men now over-index on experience, particularly when personalized marketing is involved. Among Gen Z male specialty shoppers, nearly half (47%) cite personalized marketing as an important purchase driver.
In physical stores, expectations are rising fast. Store-related attributes, from product availability to associate expertise, gained importance across all age groups. Consumers now demand end-to-end brand experiences, with helpful associates, in-stock assortments, and cohesive storytelling as key differentiators.
Science Over Surface in Beauty
In the beauty and wellness sector, AlixPartners' new report finds a similar redefinition of value, anchored in transparency, expertise, and science. Beauty: Age of Admission introduces the "Consumer PhD," a new generation of self-educated shoppers who merge beauty, health, and wellness in pursuit of holistic self-care.
"Today's beauty consumer expects pharmacological efficacy, not cosmetic claims," said Lindy Firstenberg, Leader in the Beauty, Health, and Wellness Practice at AlixPartners. "They understand ingredients, formulations, and results and expect brands to meet them at that level."
The report highlights that store-based experiences are regaining importance in beauty as well. Consumers increasingly seek tactile engagement, expert consultations, personalized recommendations, and immersive storytelling, elements that digital channels struggle to replicate.
Loyalty is being redefined as traditional points programs have lost relevance, replaced by a preference for mono-brand stores that offer in-person connection and education. Prestige and luxury brands are leading this shift, using physical spaces to build narrative and trust rather than just drive transactions.
The rise of the "Consumer PhD" also parallels an emerging male beauty ideology, in which data-driven "longevity optimization" and performance-hacking trends are drawing men into the beauty and wellness conversation. This reinforces that men, across both fashion and beauty, are over-indexing on experience and personalization.
Across both sectors, a unified theme emerges: the consumer has evolved from passive buyer to active evaluator. They expect brands to deliver on substance, from quality and science to experience and trust.
"The fundamentals of value have changed," Lapinsky added. Consumers are informed, intentional, and engaged. They reward brands that offer clarity and confidence, and they're quick to walk away from those that don't."
Methodology for 2025 Consumer Sentiment Index | Fashion
Between August 5 and August 14, 2025, AlixPartners surveyed more than 9,000 consumers on their preferences and priorities across 140 retailers and nine retail sectors: accessories, jewelry, luxury, footwear, outdoor and active, specialty, department store, mass and club, and off-price. The research examined how consumers rank and prioritize five key pillars of retail performance—access, experience, service, product, and price—to identify shifts in sentiment and purchase drivers across categories.
Methodology for 2025 Consumer Sentiment Index | Beauty
Between August 7 and August 14, 2025, AlixPartners surveyed more than 5,000 consumers on their preferences and priorities across dozens of major retailers and five sectors: department stores, drug and mass, monobrand, online and social, and specialty. The Consumer Sentiment Index evaluates retailers and purchase drivers across five key pillars—access, experience, price, product, and service—to identify trends by sector, gender, generation, and income.
View the complete rankings in AlixPartners' 2025 Consumer Sentiment Index reports for Fashion and Beauty.
About AlixPartners
AlixPartners is a results-driven global consulting firm that
specializes in helping businesses successfully capitalize on
opportunity and address critical challenges. Our clients include
companies, corporate boards, law firms, investment banks, private
equity firms, and others. Founded in 1981, AlixPartners is
headquartered in New York and has offices in more than 20 cities
around the world. For more information, visit https://www.alixpartners.com.
The firm's Fashion and Beauty, Health & Wellness practices partner with leading global brands to deliver performance transformations grounded in data, consumer insight, and operational precision.