Home / Knowledge / News / Apparel/Garments / Amazon Europe retail losses bigger than Sears: Report

Amazon Europe retail losses bigger than Sears: Report

Oct '18
Courtesy: Amazon
Courtesy: Amazon
The losses made by American chain of department stores, Sears, in 2017 were about the same as Amazon's European retail holding company Amazon EU SARL, according to a latest report. Sears made loss of $981 million, very close to Amazon EU SARL's $988 million, as per the accounts recently filed by both the companies at London's Companies House.
Sears was struggling to adapt to a changing world before e-commerce was invented, and it did no better after e-commerce came along, says the report released by Clothesource, an Oxford-based apparel industry consultancy, which helps the global garment community improve production and sourcing.
the report 'Emperors' Clothes' adds that well run physical retailers are prospering: the biggest clothing specialists on either side of the Atlantic (Inditex and TJX) get almost all their sales from physical stores and they have just upped their sales and profit forecasts.
In fact, with online accounting for just 8.9 per cent of US retail in 2017, "The effect of Amazon, or any other online retailer, on Sears is widely over-rated," says Mike Flanagan, CEO of Clothesource.
In both Britain and the US, more people are working in retail today than a decade ago. "So the problem is not about inevitable shifts in consumer purchasing: the main problem lies with many retailers' management," says Flanagan. "Too many have lost touch with their customers: Clothes stores keep aiming at millennials - broke, indebted and in precarious jobs - when most clothes spending comes from the middle-aged," he adds. "They are selling fashion when their customers just want stylish clothes that fit properly."
The report also says that online specialists like Amazon, buoyed by seemingly limitless ability to raise money and chasing sales growth, seem to be selling below cost. This drags the whole retail industry into a downward spiral of price-cutting and vanishing margins. But successful retailers have fought this. (PC)

Fibre2Fashion News Desk – India

Must ReadView All

Vietnam targets $ 40 bn in textile-garment exports in 2019

Apparel/Garments | On 22nd Jan 2019

Vietnam targets $ 40 bn in textile-garment exports in 2019

The Vietnam Textile and Apparel Association (VITAS) has set a target...

Myanmar RMG units exporting to EU rose by 180 in 5 yrs

Apparel/Garments | On 22nd Jan 2019

Myanmar RMG units exporting to EU rose by 180 in 5 yrs

The number of readymade garment (RMG) factories in Myanmar that...

India to soon have own standard for apparel size: minister

Apparel/Garments | On 21st Jan 2019

India to soon have own standard for apparel size: minister

India will soon roll out a size project for Indian apparel on the...

Interviews View All

Headhonchos, Textiles & allied industry

Textiles & allied industry

Textiles industry is always in the forefront in accepting latest technology

Headhonchos, Indian fashion industry

Indian fashion industry

Cotton consumption will keep growing in the Indian fashion industry

Karin Ekberg, Leadership & Sustainability

Karin Ekberg
Leadership & Sustainability

Sustainable models are beneficial for brands, retailers and manufacturers

Ravindra Jain, Ashish Baid,

Ravindra Jain, Ashish Baid

Oswal Prints Private Limited has been manufacturing and exporting ethnic...

Suresh P Bagrecha,

Suresh P Bagrecha

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

Maya Simova,

Maya Simova

Inter Expo and Congress Center (IEC) is a prominent exhibition centre in...

Iago Castro Asensio, RCfil Distribuciones S.L.

Iago Castro Asensio
RCfil Distribuciones S.L.

Iago Castro Asensio, International Business Manager of RCfil...

Larry L Kinn, Suominen Corporation

Larry L Kinn
Suominen Corporation

Larry L Kinn, Senior Vice President - Operations Americas of Suominen...

Alfonso Marra, Klopman

Alfonso Marra

It was in 1968 that Klopman introduced the concept of poly/cotton workwear ...

Varsha Wadhwa, VW

Varsha Wadhwa

Coming from a family that ran a business of jute and linen mills since...

Aditi Somani, Aditi Somani

Aditi Somani
Aditi Somani

Aditi Somani specialises in luxury fusion wear with international cuts and ...

Vaanee Bhatia, Gritstones Clothing

Vaanee Bhatia
Gritstones Clothing

<div>Delhi-based Gritstones Clothing offers quality and exemplary style...

Press Release

Press Release

Letter to Editor

Letter to Editor

RSS Feed

RSS Feed

Submit your press release on


Letter To Editor

(Max. 8000 char.)

Search Companies


Leave your Comments

January 2019

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

news category

Related Categories:

Advanced Search