Amazon Becomes # 1 Clothing Retailer in US, Surpassing Walmart, Target, Gap, and Others Inc. AMZN,
is the number one clothing seller in the United States, according to the latest data from Wells Fargo, as the e-commerce giant makes even bigger gains during the COVID-19 pandemic.

Wells Fargo estimates that U.S. clothing and footwear sales on Amazon, including third-party sellers, grew 15% in 2020, reaching $ 41 billion.

“Although this is only a modest increase of + 15%, we believe the overall demand for clothing has been stifled by the pandemic, and Amazon customers were more focused on ‘essential’ items. and / or items that responded to the new work-of-home environment, ”the Wells Fargo report said.

Yet that total is 20-25% more than Walmart Inc. WMT,
+ 0.56%,
that happened to number two. And it accounts for 11-12% of all clothing sold in the United States, as well as 34-35% of all clothing sold online.

Walmart announced this week that it has hired American fashion designer Brandon Maxwell as the creative director of two of its private labels.

According to Wells Fargo, only six other companies in the United States sell $ 10 billion or more in “soft lines”: TJ Maxx’s parent company, TJX Cos. TJX,
+ 0.49%
; Macy’s Inc. M,
; Target Corp. TGT,
; Kohl’s Corp. KSS,
; Gap inc. GPS,
+ 3.23%,
parent company of the brand of the same name, Banana Republic, Old Navy, Athleta and the Intermix chain; and Ross Stores Inc. ROST,
+ 0.67%

See: Walmart Appoints Brandon Maxwell Creative Director of Two Private Fashion Brands

Also: The Yeezy Gap collection arrives in the first half of 2021

Wells Fargo predicts clothing and footwear sales on Amazon to exceed $ 45 billion in 2021, a “modest” gain of 10%, with customers shopping in stores again as coronavirus vaccine continues to rise. to deploy themselves.

Wells Fargo expects online clothing and footwear sales to stagnate in 2021, although this would still place sales above pre-COVID levels.

“[T]Mainstream retailers struggled mightily in 2020 amid the pandemic, but the channel shift to e-commerce has been dramatically accelerated (in favor of Amazon), ”wrote Wells Fargo analysts led by Ike Boruchow.

Amazon’s U.S. gross merchandise volume (GMV) in all categories except Whole Foods Market was $ 290 billion last year, up $ 9 billion year-on-year. the other.

“Given that Amazon’s addressable market (as we define it) grew by $ 180 billion, that means Amazon accounted for about 50% of the market’s sales growth in 2020,” the report says.

Read: Target to spend $ 4 billion per year over the next few years to take advantage of the 2020 “record”

The latest Adobe Digital Economy Index revealed that COVID-19 gave e-commerce an increase of $ 183 billion in 2020.

“This is almost the size of the last holiday shopping season, where $ 188.2 billion was spent online between November and December 2020,” the report says.

Calendar year 2021 is expected to be between $ 850 billion and $ 930 billion.

“The pandemic has produced a rare dramatic shift in online spending, equivalent to a 20% increase, and future growth is expected to build on that gain. 2022 is expected to be the first trillion dollar year for e-commerce, ”Adobe ADBE,

Don’t miss: Kohl’s Says It Added 2 Million New Customers In 2020 Thanks To Amazon’s Return Program

Wells Fargo notes that some brands have partnered with Amazon in order to take advantage of the company’s reach.

“Many vendors are partnering with Amazon to build a comprehensive brand presentation on the site, with assortments that do little to compete with existing channels,” analysts said.

Examples include Calvin Klein, a PVH Corp. PVH,
brand, and Carter’s Inc. CRI,
+ 0.83%,
who created a brand, Simple Joys, specifically for Amazon.

Amazon stock has risen 71% in the past year, topping the S&P 500 SPX index,
+ 0.24%,
which is up nearly 56% over the period.

Amplify IBUY online retail ETF,
has climbed 246.7% in the past 12 months.

Anne G. Cash

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