Amazon dominates apparel market, Walmart, Target catch up


The retail industry has taken the storm by storm, with major players like Walmart, Target, Kohl's and Macy's finding ways to catch up and break through Amazon's expanding moat in the apparel category.


According to PYMNTS data and earnings reports from mainstream retailers in recent weeks, Amazon continues to maintain its dominance in the apparel space, and Walmart is picking up pace. Walmart+ Weekend in June and Prime Day in July gave us a look at the relative strength of these two closely watched fighters.


According to a PYMNTS survey report, in 2022, 38% of Prime users have purchased fashion products during Prime Day. The sales of clothing and accessories (clothing and accessories) are not volatile compared with last year, but their sales in clothing The lead remains stable and the synchronization is trending upwards.


During Walmart's 2022 Walmart+ Weekend sale, 56% of Walmart+ users purchased clothing and related accessories, but given that Walmart+'s membership is about 1/4 of that of Prime users, Amazon's lead in clothing is still hard to shake.


In the first quarter of 2022, Amazon accounted for 14% of total apparel spending, more than double Walmart's 6.2%, according to PYMNTS' Battle of Consumer Retail Spending report. The sub-categories in the clothing and accessories category on Amazon may not be as broad as Walmart's, but Amazon now has more than 50 self-operated fashion brands, plus a huge team of third-party brands, which attracts consumers with a strong brand advantage. .


Walmart is now taking a different approach, adding live shopping and KOL marketing, and has reached a partnership with second-hand clothing trading giant thredUP to provide innovative measures such as free shipping on orders over $35 to attract consumers.


Target's apparel sales also saw a low-single-digit decline in the second quarter amid the economic shock in the first half. Target's chief development officer Christina Hennington said on the earnings call that while overall sales in the apparel category declined, women's fashion-forward and performance apparel performed well on the back of strong sales growth in the category over the past two years. eye growth. Now, Target is focusing on its Marvel co-branded products and beauty products this fall, and plans to open 250 Ulta beauty stores by the end of the year.


Meanwhile, Kohl's apparel business has also taken a hit, with CEO Michelle Gass saying on an Aug. 18 earnings call that sales of athleisure and outdoor apparel remain a focus for the company, but On top of the strong growth achieved last year, coupled with the impact of an unstable supply chain for sneakers, sales growth across the segment is starting to slow. In addition, the sales performance of youth-related items was also not as good as expected, but the sales performance of youth men's customized clothing and plus-size men's clothing remained stable.



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