Billions Are Flowing Into Fashion and Retail Deals in 2025
Consumer spending is cooling, but investors are writing bigger checks than ever. According to KPMG’s Q2 M&A update for the consumer and retail sector, deal volume fell 14.6% year-on-year to 496. Yet total transaction value jumped 194%, hitting USD 34.7 billion.
Fewer deals. Bigger money. Higher stakes.
Billion-Dollar Bets on Digital Natives
Unilever is rumored to be eyeing Dr. Squatch for USD 1.5 billion. Meanwhile, E.l.f. Beauty dropped USD 1 billion on Rhode, Hailey Bieber’s skincare line.
These digitally native brands don’t just sell products. They own the culture. With authentic connections to Gen Z and millennial audiences, strong social media presence, and hyper-loyal communities, they give legacy players like Unilever and E.l.f. a shortcut to digital innovation.
Skechers, Dockers, and the “Value Discovery” Play
Investors aren’t only chasing hype. They’re hunting for resilience.
Take Skechers, acquired by private equity giant 3G Capital for USD 9.4 billion. It may not be the flashiest name in activewear, but it owns the comfort-and-affordability lane and continues to deliver steady growth. In a sector where volatility is the norm, Skechers looks predictable — and that’s exactly the appeal.
The same applies to heritage brands. ABG’s acquisition of Dockers is a bet on history and recognition. With ABG’s marketing and licensing engine, the label could move from “your dad’s khakis” to a revitalized global player.
Market Leaders Double Down on Scale
For incumbents, the risk isn’t decline - it’s standing still.
Dick’s Sporting Goods bought Foot Locker for USD 2.4 billion.
DoorDash scooped up Deliveroo, SevenRooms, and Symbiosys in multi-billion-dollar deals to tighten its logistics and tech game.
Prada Group spent EUR 1.25 billion to acquire Versace, a move aimed at expanding its consumer base and hedging against slowing growth at Miu Miu and Prada itself.
These are not quick fixes. They are long-term plays to secure market share and build resilience.
Global Ambitions Meet Data Gold
Japanese e-commerce leader Zozo acquired Lyst, a fashion platform with a massive trove of consumer data. This wasn’t just about international expansion. It was about insights. Access to Lyst’s real-time trend data could give Zozo sharper product strategies and smarter sourcing decisions - a competitive edge in global fashion.
Why Big Deals Thrive in a Cooling Market
KPMG puts it plainly: “The retail industry is undergoing a survival transformation. Consolidation is no longer optional. It’s existential.”
Economic uncertainty and inflation concerns haven’t paralyzed investors. Instead, they’ve sharpened focus on high-value assets. Add in a “bottom-fishing” mindset - picking up distressed or undervalued companies while prices are low - and the result is a wave of mega-deals that may pay off when markets rebound.
The 2025 Playbook
In this high-stakes environment, investors are chasing three categories:
Digitally native brands with cultural cachet and loyal communities.
Resilient operators like Skechers with steady fundamentals.
Heritage labels like Dockers that can be rebooted for a new generation.
The paradox of 2025 is clear. Consumer spending may be soft, but capital is moving faster than ever - and the bets are only getting bigger.
