What if consumers stopped shopping for fashion?

After a costly festive season, January has become a financial reset for many households. What starts as No Spend January, a short-term pause on non-essential purchases, is increasingly extending into longer commitments such as a No Buy Year, as consumers look for structured ways to curb spending and rebuild financial stability throughout 2026. The trend, amplified on social platforms like TikTok, encourages cutting back on categories including fashion, beauty and homeware.

While these movements can empower consumers, they pose challenges for fashion businesses, particularly independents. Capital on Tap, which examined the impact of these behaviours, spoke with SME owners and finance experts to understand how prolonged spending restraint ripples through retail.

“As a small business owner selling physical products, I absolutely understand why many consumers are reassessing their spending and becoming more mindful with their money,” said Judith Oatley, founder of Mai Joie Botanicals. “Conscious budgeting can be a positive thing when it encourages people to spend with intention rather than impulse.”

However, Oatley warned that extended no-buy trends can strain small brands. “Unlike large retailers, small businesses don’t have the same financial buffers, and even a short pause in consumer spending can significantly impact cash flow, product launches, and long-term planning.”

Crucially, the shift is not an outright rejection of consumption. “What I’m seeing so far is a shift rather than a complete stop,” Oatley added. “Customers are buying less, but they’re being more selective.”

Consumers are more selective

From a financial perspective, Kamilla Fernandes-Pickett, marketing and communications senior manager at Capital on Tap, stressed the importance of preparation. “Even a short decline in customer spending can impact day-to-day operations,” she said, advising SMEs to closely monitor cash flow and plan launches around peak periods.

For fashion, the question is no longer whether consumers will return to shopping, but whether brands can remain relevant in a climate where buying less, and buying better, is becoming the point.

“To reduce the impact of quieter months, businesses can plan product launches and marketing campaigns around peak spending periods, or build in financial flexibility if launches coincide with slower months like January, other strategies include focusing on customer engagement, loyalty programs, and highlighting the value and uniqueness of products through storytelling, sustainability messaging, or showcasing quality, this makes sure that sales don’t rely solely on volume alone.

“Ultimately, trends like No Spend January don’t have to be a setback”, Kamilla concludes. “Businesses that plan ahead of their competitors, manage their cash flow carefully, and connect meaningfully with customers can maintain stability even at a time when spending slows down.”