Amazon walmart apparel

Amazon Poised to Topple Walmart as No. 1 Apparel Retailer

Watch Amazon outshine Walmart and become the No. 1 apparel seller in 2018, according to Wells Fargo and Morgan Stanley.

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Analysts from both banks said the gross merchandise value (GMV) of Amazon, which hit $25 billion in 2017, as well as traffic surge on its website, is a clear sign that it’s leading the race.

This positive market outlook prompted Wells Fargo to raise its price target on Amazon to $2,300 from $2,110.

“Amazon dominates the online market for apparel and footwear (35 percent of share, or four times the #2 player) and they even have remarkably high market share in the total apparel/footwear market in the U.S.,” Ike Boruchow, Wells Fargo Analyst

Amazon Prime Users Bolster Apparel Sales

Amazon Prime logoAside from the large number of unique visitors to its U.S. site, which has grown to 190 million as of the second quarter, Amazon’s over a hundred million paying Prime members are bolstering its clothing sales.

The demand for wardrobe essentials like socks and underwear may be high on the Amazon marketplace, but the company’s partnerships with popular brands like Nike, Calvin Klein, and J. Crew among others, support its goal to become the go-to platform for fashion.

While some retailers believe that their space is Amazon-proof, Boruchow said others are now taking a ‘if you can’t beat ’em, join ’em’ perspective.’

He named Kors, Hanesbrands, Ralph Lauren Corp., and Skechers as among the big retailers taking advantage of the eCommerce giant’s platform.

While Amazon is currently the second largest apparel seller, with Walmart still at the top spot, analysts say it won’t be long before it becomes No. 1.

Is this continued domination from Amazon a good thing for global eCommerce or is this a worry if they dominate too many areas?

Who are you rooting for in this race? Let us know your thoughts in the comments below or let us know your comments in the Facebook Group.

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  1. Amazon is dipping in too many areas. I do not support them.

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