Wells Fargo predicts that Amazon will be the No. 1 seller of apparel in the U.S. in 2018, raising its price target on the eCommerce giant on Monday (September 10).
Amazon’s apparel and footwear gross sales are expected to top $30 billion this year, beating out longtime incumbent Walmart for the top spot, wrote Wells Fargo analyst Ike Boruchow, according to CNBC.
“Amazon dominates the online market for apparel and footwear (35 percent of share, or four times the No. 2 player) and they even have remarkably high market share in the total apparel/footwear market in the U.S.,” he wrote in a note to clients.
“The gross merchandise value (GMV) of apparel and footwear that was sold on Amazon’s platforms approached $25 billion in 2017 — representing five to six times the amount of softlines sold on the site just 5 years earlier,” he added.
Partnerships with popular brands such as Nike have helped lure more customers to Amazon’s marketplace, as well as its ability to drive traffic to the site. In the second quarter, the number of unique visitors to Amazon.com in the United States increased to 190 million, comprising 75 percent of all web users.
Earlier this year, Amazon revealed that it has more than 100 million Prime members, while analysts at Citigroup recently estimated that the number of Prime subscribers will more than double to 275 million over the next decade.
“Though some retailers believe that their space and product category is well-insulated from the Amazon threat, others are taking a ‘if you can’t beat them, join them’ perspective,” Boruchow said.
Don’t count Walmart out yet, though. Earlier this year the retailer launched new fashions for women, men and children, including Time and Tru, Terra & Sky, Wonder Nation and George.
“We listened to our customers and are proud to deliver apparel choices that meet at the intersection of everything they desire: on-trend styles, comfort and quality, all at unbeatable prices,” Deanah Baker, senior vice president of apparel for Walmart U.S., said in an announcement. “These new brands are a thoughtful reflection of current trends and styles, while considering our customers’ busy, on-the-go lifestyles.”