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While Amazon used to be the site where you bought affordable books, CDs, DVDs, and electronics, the online retailer is quickly gaining ground as a seller of designer apparel and accessories.
In fact, analysts estimate that Amazon’s now booming apparel business could lead it to surpass Macy’s as the top retailer of such goods in just two years, Business Insider reports.
Analysts from Cowen Group say that the e-retailer’s thriving foray into apparel – especially when it comes to handbags and jewelry – could soon make it the top apparel retailer, despite the fact it has no physical stores.
Amazon’s rise to the top of the retail ranks has been made possible, in part, because the company doesn’t have to pay costs associated with bricks-and-mortar locations, something other retailers spend a significant amount of money on. As a result of skirting those costs, Business Insider reports, the company can often lower prices for apparel items, creating a more appealing environment for shoppers.
Making matters worse for traditional department stores is the fact that consumers are spending about 1.5% less on clothing and accessories than they have in previous years, according to analysts from Seeking Alpha.
Business Insider reports that the decrease in spending has been linked to consumers’ changing habits, including increased expenses in other areas such as rent, cellphones and other personal services – a trend that could continue to hurt department stores in the future.
Amazon is becoming Macy’s biggest threat [Business Insider]
by Ashlee Kieler via Consumerist
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