Is a surprising clothing company set to take over the US?

By Nell Walker
As online sales inevitably outstrip those of bricks-and-mortar stores, an oddly surprising company is threatening to take the lead in the ongoing race t...

As online sales inevitably outstrip those of bricks-and-mortar stores, an oddly surprising company is threatening to take the lead in the ongoing race to become the biggest clothing retailer.

 

Amazon has left Nordstrom, Gap, Kohl’s, and Macy’s in the dust as it creeps ever closer to being the biggest online clothing seller in America. Sales last year totalled a hefty $16.3 billion. This makes it second only to Walmart.

Amazon has snuck up the inside lane quietly, acquiring clothing and footwear companies along the way, and hiring luxury fashion executives like Julie Gilhart and Caroline Palmer in order to become the American clothing behemoth it is today. The latter strategy has given the company the know-how to branch out into high-end fashion sales, and its standard apparel sales are not just overtaking those of competitors, but causing a loss to high street businesses.

Amazon is expected to continue taking business from department stores, and its newfound reputation as a fashion giant should spread beyond the US. CEO Jess Bezos gave his reasoning for joining in the apparel retail race back in 2012 in an interview: “Gross profit dollars per unit will be much higher on a fashion item [than cheaper things]”. You can’t argue with that logic.

 

Follow @ManufacturingGL and @NellWalkerMG

Share

Featured Articles

What to see and do at GSMA MWC Shanghai 2024

At the 2024 GSMA MWC in Shanghai, guests will learn more about the future of 5G and IoT, as well as the role of mobile connectivity in manufacturing

EV Recycling Driven By Tata Steel, Nucor and Dowa Holdings

Market projected growth for EV recycling set to go from US$551bn in 2024 to US$768bn by 2029 with Tata Steel and Nucor embracing ferrous metal recycling

Brooke Weddle: Manufacturing Needs A Rebrand

Brooke Weddle, senior partner at Mckinsey, sat down with Manufacturing Digital to discuss methods to address manufacturing's global hiring crisis

Immensa and Intaj Suhar partner to boost Omani manufacturing

Procurement & Supply Chain

Bain & Company Report: OEMs and Digital Transformation

Smart Manufacturing

The Factory of the Future: Manufacturers' Biggest Challenges

Smart Manufacturing