Home / Knowledge / News / Apparel/Garments / Amazon set to become top US apparel retailer by 2017
Amazon set to become top US apparel retailer by 2017
13
May '16
Courtesy: Amazon
Courtesy: Amazon
Global e-commerce major Amazon.com is on course to become the top American apparel retailer next year, according to investment bank Cowen.

John Blackledge, the bank's analyst, said recent earnings reports by Amazon and Macy's painted a clear picture.

“In light of Amazon and Macy's recent results, we feel more confident that Amazon will displace Macy's as the No. 1 US apparel retailer by 2017,” Blackledge said in a research report. “Amazon's Apparel & Accessories business is one of the key drivers of Amazon's EGM (electronics and general merchandise) segment.”

Blackledge had also predicted in a report last July about Amazon overtaking Macy's in apparel sales.

Amazon's success in the apparel category is being driven by a dramatically larger selection, ramping brand relationships, superior fulfillment and technology innovations.

Amazon is growing in the clothing business, while traditional retailers such as Wal-Mart and Target are in decline, Blackledge said.

In the first quarter of 2016, the number of Amazon apparel purchasers increased 19 per cent year over year, while apparel buyers at Wal-Mart and Target fell 1 per cent and 5 per cent, respectively, he said.

“The longer-term trend also reflects a share shift in apparel purchasers, with Amazon apparel purchaser growth of 28 per cent each quarter (on average) since 2014, while apparel purchasers fell 4 per cent and 3 per cent at Wal-Mart and Target,” he said. “In Q1, Amazon had 15 per cent more apparel purchasers than Wal-Mart (vs. 24 per cent fewer in Q1 2014) and 37 per cent more apparel purchasers than Target (vs. 4 per cent more in Q1 2014).”

This week, Macy's reported soft Q1 sales and slashed its full-year forecast that sent its stock to a four-year low on Wednesday.

Macy's said its Q1 sales fell 7.4 per cent year over year to $5.77 billion. Analysts on average were looking for $5.93 billion in sales.

For 2016, Macy's now expects same-store sales to fall 3 per cent to 4 per cent, compared with its prior guidance for a 1 per cent decline.

On April 28, Amazon reported its highest sales growth in nearly four years. Its Q1 revenue jumped 28 per cent to $29.1 billion, overtaking a forecast of $28 billion.

Blackledge noted that for the past three years, Cowen's monthly survey of 2,500 US consumers has consistently shown that Amazon is adding shoppers, while the number of Macy's shoppers hasn't changed. Amazon also doesn't have the problem of physical stores, which present Macy's and other retailers with a host of complex issues, like real estate value, maintenance, upkeep, marketing and human interactions. (SH)

Fibre2Fashion News Desk – India


Must ReadView All

UNIDO, eWTP discuss strengthening ties to back e-commmerce

Textiles | On 25th Apr 2018

UNIDO, eWTP discuss strengthening ties to back e-commmerce

United Nations Industrial Development Organisation director general...

Courtesy: HueTrap

Apparel/Garments | On 25th Apr 2018

Making sustainability affordable is a big challenge

In a lot of instances, being sustainable comes with an additional...

Courtesy: Formosa Petrochemical Corporation

Textiles | On 25th Apr 2018

Formosa to set up petrochemical plant in Louisiana

Formosa Petrochemical Corporation has selected St. James Parish in...

Interviews View All

Dinaz Madhukar
DLF Emporio and DLF Promenade

‘Each event and promotion is planned out keeping in mind the business of...

DK Sharma
Velocity Apparelz

We constantly communicate with employees at all levels

Abhishek Ganguly
Puma India

‘As a brand, Puma is always looking for new and innovative ways to inspire ...

Suresh P Bagrecha

Komal Texfab, founded in 1981, is into manufacturing of knitted fabrics,...

Liz Manning

<div><b>Liz Manning</b>, Business Development Manager at Catexel, has...

Nitesh Mittal

Kusumgar Corporates is a leading manufacturer of technical textiles and...

Mark Paterson
Technical Absorbents Ltd

Mark Paterson, R&D manager of Technical Absorbents Ltd talks about Super...

Giorgio Mantovani
Corman S.p.A

Giorgio Mantovani, MD of Corman, with a presence in both Milano and New...

Marcel Alberts
Eurofibers

Coating at a fibre level is a practice not usually seen in the...

Amiben Shroff
Shrujan

From its modest beginning in the late 1960s, Shrujan has grown into a...

Silvia Venturini Fendi
Fendi s.r.l

"Yes, my confidence and positive attitude are my strengths and should be...

Karan Arora
Karan Arora

Bridal couture created with rich Indian heritage, exquisite craftsmanship...

Press Release

Press Release

Letter to Editor

Letter to Editor

RSS Feed

RSS Feed

Submit your press release on


editorial@fibre2fashion.com

Letter To Editor






(Max. 8000 char.)

Search Companies





SEARCH

Leave your Comments


April 2018

Subscribe today and get the latest update on Textiles, Fashion, Apparel and so on.

news category


Related Categories:

Planning to Take the Leap towards
Sustainability?

Do you see sustainability as a route to business growth?

Yes No

Do you think the sustainability space has the needed tools and resources available for a business to lead change?

Yes No

Active Poll

Do you see sustainability as a route to business growth?

Yes
69.9%
No
12.6%
Skip
17.5%

Total Votes: 103

Do you think adopting a sustainable approach will be a profitable move for your business?

Yes No

Active Poll

Do you think the sustainability space has the needed tools and resources available for a business to lead change?

Yes
63.1%
No
29.1%
Skip
7.8%

Total Votes: 103

Do you want the world to know about your sustainability journey and your business’ environmental footprint?

Yes No

Active Poll

Do you think adopting a sustainable approach will be a profitable move for your business?

Yes
87.4%
No
8.7%
Skip
3.9%

Total Votes: 103

Thanks for your valuable feedback. Claim your free latest sustainability e-book.

Active Poll

Do you want the world to know about your sustainability journey and your business’ environmental footprint?

Yes
82.5%
No
7.8%
Skip
9.7%

Total Votes: 103


E-News Insight
Subscribe Today and Get the
Latest News Update in Your Mail Box.
Advanced Search