Amazon's Apparel Line Now No. 2 In Sales, Trailing Only Walmart
We have long been tracking Amazon's disruptive entry into the apparel market, and it looks like the company is still experiencing rapid growth. According to Investor's Business Daily, the e-commerce giant is set to overtake Macy's and TJX in apparel and footwear sales this year, leaving it second only to Walmart.
Wells Fargo analyst Ike Boruchow said the company's gross merchandise volume is expected to approach $18.5 billion this year, a 19 percent jump from last year. He said Amazon has tripled its sales in apparel and footwear over the past five years, and he expects Amazon's total share of the apparel and footwear online market to approach 30 percent this year.
Not only that, but Euromonitor data reported that the company sells about five times as much apparel and footwear online as Walmart, which means it could be reaching the No. 1 spot in the near future. To compete, Walmart has ramped up its online efforts, but it might be too little too late to catch up.
Nomura analyst Simeon Siegel also had some predictions to share, according to Investor's Business Daily.
"Given Amazon's continued push into apparel, and the adoption by new vendors and new customers, coupled with the launch of Amazon Wardrobe and new private-label apparel lines, we believe Amazon will continue to see double-digit growth and is among, if not already, the world's largest apparel retailers," Siegel said.
Now that we've had enough time to evaluate Amazon's footprint on the apparel world, it seems safe to say that there is no slowing down for the company. For anyone working with promotional apparel, it's now more critical than ever to make sure your online platforms are ready for customer transactions.