How Ozempic Is Reshaping Clothing Sizes

Last June, Lululemon’s CEO mentioned the brand was “out of stock in some of [its] smaller sizes.”

TODAY’S STORY

GLP-1 drugs like Ozempic are upending apparel inventory planning.

As the percentage of U.S. adults using these drugs grows—from 6% today to a projected 13% by 2030—retail brands are seeing increased demand for smaller sizes, with S and M selling out quickly.

Last June, Lululemon’s CEO mentioned the brand was “out of stock in some of [its] smaller sizes.” Impact Analytics also found a surge in demand for smaller sizes (XXS, XS, and S) in New York, where GLP-1 usage is particularly high.

Traditionally, many apparel brands used a 1-2-2-1 ordering model, stocking one part S, two parts M, two parts L, and one part XL. However, as body weight trends shift in the U.S., retailers are adopting a 2-2-1-1 model and revising their sizing strategies every six months instead of annually.

Updating sizing algorithms is costly but crucial for sales. As of November 2023, many retailers had a “size match percentage” of 20%-51%, well below the industry’s best-in-class 70% benchmark.

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These retailers could file for bankruptcy in 2025

@boringbusinesskieran

These retailers could file for bankruptcy in 2025 🛍️ #business #retail #bankruptcy

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Kieran & Justin Ryan