Yahoo Finance Amazon Could Replace Macy’s as Leading Apparel Retailer by 2017
Amazon Stock Could Set Record High with 2Q15 Earnings Release
Amazon’s growing presence in the retail space
According to a report from the Cowen Group, Amazon’s (AMZN) growth in the apparel purchase market could see it replacing Macy’s (M) as the number one apparel retailer in the US. Amazon’s large product selection and fulfillment strategies are driving its growth in this market.
Amazon is aggressively working toward finalizing partnerships with fashion brands including Gucci, Kate Spade, and BCBG. The objective is to offer ~343,000 items from leading brands that sell directly to the consumer.
In comparison, Macy’s offers 85,000 apparel items, Walmart (WMT), 292,000, Nordstrom (JWN) offers 85,000, and Target sells 35,000 apparel items, according to the Cowen report, and as the chart above shows.
Macy’s apparel sales were five times greater than Amazon’s just four years ago. The main reason for Amazon’s popularity, and why it poses a possible threat to retailers such as Walmart and Target, is the variety of apparel on offer at Amazon. Increased apparel selection will boost Amazon’s gross merchandise volume, which, in turn, will boost Amazon’s revenues.
You can get exposure to Amazon by investing in the Consumer Discretionary Select Sector SPDR Fund (XLY). It has 6.1% of its portfolio invested in Amazon.
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