Amazon has reportedly surpassed Walmart as the top apparel retailer in the US
Amazonsurpassed Walmartas the country's top apparelretailer in 2020, CNBC reported.
- Amazon had 20-25% more apparel sales than Walmart, according to a Wells Fargo note cited by CNBC.
- Americans tend to spend the most money online on apparel relative to electronics and furniture.
Amazon has surpassed Walmart as the country's top apparel retailer, CNBC reported.
Wells Fargo analysts said Amazon had 20% to 25% more apparel sales in 2020 than Walmart, and the online retailer will surpass $45 billion in apparel and footwear this year.
Analysts had predicted Amazon would soon lead Walmart in apparel, the space where Americans spend the most money online relative to things like electronics and furniture.
Walmart said it does not comment on analyst notes. Amazon declined to comment.
Read more: A Walmart exec reveals why its new partnership with the fashion designer who dresses Lady Gaga, Oprah, and Michelle Obama will elevate premium private-label offerings and boost apparel sales
As decreased foot traffic in malls hurt sales at department stores like Macy's and JCPenny, Amazon grew its clothing and accessory business. Of the 26% of consumers who said they spend less on apparel at Macy's than they did three years ago, over 42% said they've switched that spending to Amazon, according to a 2018 report by Insider Intelligence.
Walmart introduced new clothing brands and partnered with fashion designers in recent years to boost sales. Walmart.com recently added a whole selection of sports apparel, and partnered with with a fashion designer who dressed Michelle Obama.
Amazon's rise comes as some fashion brands stopped selling on its platform. Nike stopped selling shoes and other products on Amazon's site in 2019. The two previously had a deal where Nike would sell on Amazon if the e-commerce giant stopped third-party sellers from listing fake items. Birkenstock removed items after the shoe brand's CEO accused Amazon of failing to crack down on counterfeits.
Amazon posted its highest e-commerce growth in three years during the COVID-19 pandemic, when many Americans avoided shopping indoors. The company's Web Services generated huge growth last year as well due to companies transitioning to work-from-home models.
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