Amazon is the biggest apparel seller in the U.S. as questions arise about whether the business should be broken up

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U.S. sales of apparel and footwear on Amazon now exceeds $41 billion, including sales through third-party sellers. That total is 20%-to-25% higher than Walmart, the second biggest apparel seller in the nation, according to Wells Fargo estimates.

Amazon.com Inc. isn’t just an e-commerce giant, it’s also the biggest seller of clothing and shoes in the U.S., according to the latest edition of Wells Fargo’s report “Amazon & the Retail Rainforest.”

“While this was only a modest increase of +15%, we believe that overall demand for apparel was stifled by the pandemic, and Amazon’s customers were more focused on ‘essential’ items and/or items that catered to the newfound work-from-home environment,” the report said. “Although e-commerce seems to be pervasive, we’d note that it actually still represents a relatively small portion of total retail sales,” analysts led by Ike Boruchow said.

And the company’s push into broader areas of clothing and accessories, like the luxury space, and moves into the beauty category and other parts of the retail arena suggest it’s looking for ways to grow this sizable business. History shows that Amazon tends to chip away at the share of category competitors before becoming the dominant force.

 

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Source: CNBC - 🏆 12. / 72 Read more »