Senate Mike Braun, Indian, discusses the Amazon union in Alabama and the stimulus bill.
Amazon has become the best clothing retailer in the United States as the coronavirus pandemic dramatically accelerated a shift from traditional retail to e-commerce, according to a new data from Wells Fargo.
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A group of the bank’s retail analysts estimate that the e-commerce giant’s sales of clothing and footwear in the US, including third-party sellers, have grown by 15% to $ 41 billion by 2020. The increase represents 11-12% of all clothing sold in the US and 34-35% of all clothing sold online.
“Although it was only a modest increase of + 15%, we believe that the overall demand for clothing was suffocated by the pandemic,” analysts write in the report. ” Amazon’s customers were more focused on ‘essential’ items and / or items provided in the newfound work-from-home environment. ”
| Ticker | Safety | Last | Alter | Alter% |
|---|---|---|---|---|
| AMZN | AMAZON.COM, INC. | 3 135.73 | +43.87 | + 1.42% |
| WMT | WALMART, INC. | 132.37 | -0.95 | -0.71% |
Yet the total is 20-25% more than Walmart, which is the second largest player in the U.S. clothing market, and sells about $ 33-34 billion in soft lines annually. Walmart recently announced that it has hired American fashion designer Brandon Maxwell as creative director for two of its private labels, Scoop and Free Assembly.
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According to Wells Fargo, only six other U.S. players in the market sell $ 10 billion annually in soft lines, including TJ Maxx parents, TJX Companies, Macy’s, Target, Kohl’s, Gap and Ross Stores.
| Ticker | Safety | Last | Alter | Alter% |
|---|---|---|---|---|
| TJX | TJX | 67.26 | +0.50 | + 0.75% |
| M | MACY’S, INC. | 19.70 | -0.43 | -2.14% |
| TGT | TEIKEN CORP. | 178.40 | -1.81 | -1.00% |
| KSS | KOHL’S CORP. | 61.12 | 0.00 | 0.00% |
| GPS | GAP | 31.60 | +0.59 | + 1.90% |
| ROST | ROSS STORES, INC. | 123.68 | +0.29 | + 0.23% |
Looking ahead, Wells Fargo analysts predict that Amazon will grow its software business at a “fairly modest + 10% rate” and sell more than $ 45 billion in clothing and footwear in 2021. Amazon’s U.S. gross trade value for clothing and footwear is expected to grow. to more than $ 4 billion in 2021.
However, Wells Fargo expects online sales to continue in 2021 as consumers go shopping again as the distribution of the COVID-19 vaccine increases. As a result, the share of softlines sold online is expected to drop to around 34%, but still above the pre-COVD level of 25%.
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While brick-and-mortar retailers have seen Amazon as a competitive threat in the past, Wells Fargo analysts argue that there has been a huge increase in partnerships on the platform.
“Many vendors are working with Amazon to create a comprehensive branding offering on the site, with different products competing minimally with existing channels,” analysts wrote. “Perhaps, more importantly, the partnership with Amazon allows brands to better police third-party distribution on the site and retain control of their brand image / equity.”
Examples include Haines Brands, PVH Corp., FF Corp., Skechers, Steve Madden and Carter’s Inc., which created a brand, Simple Joys, specifically for Amazon.
| Ticker | Safety | Last | Alter | Alter% |
|---|---|---|---|---|
| HBI | HANESBRANDS | 20.22 | -0.22 | -1.08% |
| PVH | PVH CORP. | 105.00 | -1.00 | -0.94% |
| VFC | VF | 78.31 | +2.48 | + 3.27% |
| RL | RALPH LAUREN CORP | 120.73 | -0.95 | -0.78% |
| CRI | CARTERS INC | 89.85 | -0.22 | -0.24% |
| SKX | SKECHERS USA | 41.20 | +1.18 | + 2.95% |
| SHOO | STEVEN MADDEN | 37.78 | -0.24 | -0.63% |
Amazon launched its “Luxury Stores” division in September, attracting Oscar de la Renta as the first luxury brand on the platform. In addition, the company has more than 100 clothing brands on its own website.
The company also introduced Prime Wardrobe in 2017, which offers a “try before you buy” model for Prime members, including name brands such as Calvin Klein, Levi’s and Adidas. In July 2019, the company launched a Personal Shopper service for $ 4.99 per month, in addition to an Amazon Prime subscription, aimed at convenience and the provision of a stylist that the store offers.
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Overall, Amazon’s U.S. gross trade value in 2020, excluding the Whole Foods Market, was $ 290 billion, an increase of 22% year-on-year.
“As Amazon’s responsive market (as we define it) grew by $ 180 billion, that means Amazon accounted for ~ 50% of sales growth in 2020,” the analysts added. “This is the 21st consecutive quarter that AMZN’s share in growth has exceeded 20%, showing how the dominant AMZN is becoming in the retail landscape.”
An Amazon spokesman did not immediately return FOX Business’ request for comment on Wells Fargo’s report.