Don’t underestimate Amazon move into apparel and what it means for brick & mortar retail business
The brick & mortar business of retailers is already feeling the pain of consumers shifting the how and where they shop to digital (Internet and mobile) commerce. We’ve already seen the share shifts in monthly same-store-sales metrics reported by ChannelAdvisor. Amazon’s pending move into apparel as either a distribution partner, with its own branded apparel or both will pressure brick & mortar retail business even more in the coming months.
A Goldman Sachs report says brick-and-mortar apparel stores may lose some ground to Amazon, noting that the e-commerce giant has grown by leaps and bounds recently and will likely continue to grow, Yahoo Finance reports.The report estimates that apparel and accessories represent $10 billion in sales for Amazon, accounting for 20% of the online apparel and accessories market. Macy’s is behind it with just $5.2 billion in sales.Amazon’s success is due to a few things: many brands sell on its site, or to Amazon’s buyers. More will in the future as well, as companies like Gap have said they’d consider working with the online retail behemoth. Others should follow suit, “because they need to migrate to where consumer traffic is,” Goldman said.
Source: Report: Amazon’s Strides In Apparel Could Be Serious Threat To Brick-And-Mortar Stores – Consumerist
