Quick Facts

• Independent boutiques drove 62% of wholesale transaction volume on platform Joor in 2024, up from 47% in 2019
• Approximately 8,200 retail locations closed in 2025, with Macy’s planning to shutter 150 stores by 2026
• Boutique platform Garmentory is on track for 25% year-over-year sales growth in 2025

Fashion brands are betting on independent boutiques to fill the void left by struggling department stores. The shift comes as wholesale platforms report record growth from smaller retailers while major chains announce store closures.

Independent boutiques now drive 62% of transaction volume on wholesale platform Joor, according to company data. The figure represents a sharp increase from 47% in 2019, signaling a fundamental change in fashion retail dynamics.

“I’m very optimistic that the inevitable fall of huge department stores is going to lead to a boutique boom,” said Jack Sivan, designer behind menswear brand Sivan. He noted that boutique relationships are “much easier to deal with than the asymmetric relationship between a small brand and a large retailer.”

The boutique surge coincides with accelerating department store closures. Approximately 8,200 retail locations shut down in 2025, about 12% more than 2024. Macy’s plans to close 150 stores by 2026, representing about one-third of its operations.

“The independent retail sector has achieved success through thoughtful curation and a deep understanding of its customers,” said Amanda McCormick Bacal, Joor’s senior vice president of marketing. She emphasized that successful boutiques invest carefully and maintain well-trained staff with clear customer knowledge.

The trend gained visibility during New York Fashion Week, where designer Victor de Souza showcased his collection at Emanuel New York, a Manhattan boutique he opened with his partner. The venue sells his clothing alongside curated fragrances, exemplifying the integrated approach many designers are taking.

Consumer behavior supports the boutique model. Sunil Gowda, founder and CEO of boutique platform Garmentory, explained that “people don’t want to search for a checkered shirt or a black dress; they want to shop based on how they plan to use it.” His platform targets 25% year-over-year sales growth in 2025.

The shift reflects broader retail challenges. Seventy percent of fashion executives cite lack of consumer confidence as their biggest concern for 2025, while 64% of US shoppers traded down to cheaper alternatives in Q3 2024.

Multi-brand retailers face particular pressure as luxury brands reduce wholesale exposure, leading to mounting debts and closures across the sector. Small and medium fashion brands, unable to generate sufficient direct sales, remain dependent on third-party retailers for distribution.

Industry experts predict wholesale will become brands’ most profitable channel in 2026, driven by boutiques’ agility in testing new labels and bringing niche designers to market. The wholesale market increasingly favors curation and customer intimacy over scale.

Read more: Fashion brands hope the fall of department stores leads to a ’boutique boom’