Study: Target feeling fallout from Amazon’s apparel sales

2/15/2018
Prime members are driving Amazon’s apparel sales — and mostly, at the expense of Target.

Over the past 12 months, 46% of Prime members have shopped for clothing or footwear on Amazon, a factor that has the retailer currently running neck-and-neck with Target as the second-most-shopped apparel retailer in the United States, according to “How the U.S. Shops,” a study from Coresight Research (formerly Fung Global Retail & Technology).

Amazon’s launch of several apparel private labels over the last couple of years shows its commitment to growing its share of the fashion market — and customers are clearly responding. One in nine Amazon apparel shoppers surveyed have already bought items from Amazon’s private-label clothing and footwear offering. Amazon’s private-label ranges are the fourth-most-bought clothing or footwear “brand” on Amazon, only behind Nike, Under Armour and Hanes.

Almost one in five Amazon apparel shoppers are interested in trying the retailer’s apparel private labels going forward — a move that will directly impact traditional retailers. In fact, Target is already feeling most of the fallout.

The study revealed that the discount chain is the top retailer that Amazon clothing and footwear shoppers are defecting from. Looking ahead, 58.4% of Target shoppers reported they are likely to buy clothing or footwear on Amazon in the next 12 months, and 48.6% of these shoppers already have a Prime membership.

Walmart customers follow close behind with 50.3% planning an Amazon private label apparel or footwear purchase — 38.8% of these shoppers are also Prime members, according to the study.

Even non-Prime members are getting in on the Amazon apparel game, as 45.9% of all respondents said that they had shopped for apparel through the online giant in the past 12 months. Meanwhile, 48.0% said that they expect to buy apparel on Amazon in the coming 12 months, the study revealed.

“Amazon apparel shoppers cited the ease of browsing and searching on the site as the top reason for buying clothing or footwear there. That factor came in ahead of traditionally important considerations, such as price and choice,” the study said. “Unsurprisingly, given Amazon’s reputation for fulfillment and its Prime membership scheme, good or cheap delivery is another key reason that apparel shoppers cite for shopping on Amazon.”
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