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 solid performance, accumulating a 5.5% increase in volume and an 8.6% increase in revenue in the first half of 2025, according to IBGE. 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 digitization of points of sale and the advancement of e-commerce, which already represents 78% of the sales evolution in apparel between 2020 and 2024 according to IEMI, have definitively transformed the relationship between physical stores and the online channel. The store remains essential, but its role is now focused on 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. The consumer is more rational, compares prices, prioritizes quality, and responds better to brands that deliver purpose and consistency. This requires retail to take a surgical look at 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. Rising logistics and operational costs pressure margins, and the response will come from leaner business models, collections with controlled turnover, and genuine integration between channels. A focus on data and predictability will be decisive. Those who master inventory, pricing, and the right launch timing will see their brand grow sustainably.
Another point expected to gain strength in 2026 is the strengthening of new sales channels. The franchise format, marketplaces, and shared spaces continue to grow, opening opportunities for regional brands to expand their physical presence at lower costs. The hybrid model, which combines street stores (still dominant, with 66% of points of sale according to IEMI) and a digital presence, should remain the most efficient due to customer proximity and convenience.
Sustainability and innovation continue as long-term pillars. The concern with traceability, responsible raw materials, and shorter production cycles is already moving beyond discourse and becoming market practice. In 2026, the competitive edge will lie in the ability to innovate responsibly, whether through technology, new materials, or smarter logistical processes.
With all this in mind, it is easy to think that the fashion retail sector that will thrive will be the one that knows how to unite 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 it has the strength to grow above the economy's average. Now, the challenge is to transform this growth into solidity, building a smarter, more digital retail sector connected with the new consumer.
*Allan Soares is 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, with national operations and a focus on innovation, management, and brand expansion in retail.
