The fashion retail sector enters 2026 with a rare characteristic in times of instability: consistency. While national commerce alternated between months of contraction and timid growth, the fashion sector maintained a solid performance, accumulating a 5.5% increase in volume and 8.6% in revenue in the first half of 2025, according to IBGE (Brazilian Institute of Geography and Statistics). This result was more than double the growth of total retail in the same period, a sign that fashion managed to adapt more quickly to changes in consumption.
This movement is not isolated. The market has shown a new maturity, with more structured brands, well-established omnichannel strategies, and increasing use of data in defining assortment and pricing. The digitalization of the point of sale and the advancement of e-commerce, which already represents 78% of the growth in clothing sales between 2020 and 2024 according to IEMI, have definitively transformed the relationship between physical stores and online channels. The store remains essential, but its role is now focused on the experience, another fundamental point in the consumer journey.
In addition, the slowdown in credit and high interest rates are expected to continue impacting purchasing behavior in 2026. Consumers are more rational, compare prices, prioritize quality, and respond better to brands that deliver purpose and consistency. This requires retailers to take a surgical approach to product mix, pricing policy, and operational efficiency. The good news is that, even with more selective consumption, fashion remains one of the most resilient sectors, and the shopping experience will continue to be a competitive differentiator.
The challenge becomes profitability. Increased logistics and operational costs are putting pressure on margins, and the answer will come from leaner business models, collections with controlled turnover, and genuine integration between channels. A focus on data and predictability will be crucial. Whoever masters inventory, pricing, and the right timing of launches will see their brand grow sustainably.
Another point that should gain strength in 2026 is the strengthening of new sales channels. The franchise, marketplace, and shared space formats continue to grow, opening opportunities for regional brands to expand their physical presence at lower costs. The hybrid model, which combines street-level stores (still dominant, with 66% of points of sale, according to IEMI) and digital presence, should remain the most efficient due to its proximity to the customer and convenience.
Sustainability and innovation remain long-term pillars. Concern for traceability, responsible raw materials, and shorter production cycles is moving beyond mere rhetoric and becoming market practice. By 2026, the competitive advantage will lie in the ability to innovate responsibly, whether through technology, new materials, or smarter logistics processes.
With all this in mind, it's easy to imagine that the fashion retail sector that thrives will be the one that knows how to combine data, purpose, and efficiency, with the agility to respond to the consumer and the consistency to sustain the business in the medium term.
The sector has already proven that it has the strength to grow above the average of the economy. Now, the challenge is to transform this growth into solidity, building a smarter, more digital retail environment connected to the new consumer.
*Allan Soares is the CEO and founder of AKR Brands, a men's fashion holding company that brings together the brands King&Joe, King&Joe Play, and K&J Black, operating nationwide and focusing on innovation, management, and brand expansion in the retail market.
