The US apparel market is full of smoke! Who can shake Amazon's dominance?

In the United States, retail giants such as Walmart, Target, and Kohl's are setting off a melee in the clothing market. Recently, these giants have successively made new moves in the clothing market. As the "dominant player" in the US clothing market, Amazon has become a major competitor that these players are eyeing.

So, what is the current competitive landscape of the US apparel market? The latest data shows that Amazon's dominance in the apparel market is unshakable for the time being, but a bloody storm in this market has already begun.

Amazon's "old rival"

Walmart is desperately trying to catch up

According to PYMNTS data, and in line with earnings reports from major retailers in recent weeks, there is much to watch in the battle between Amazon and Walmart in the apparel space. Walmart+ Weekend in June and Prime Day in July gave us a glimpse into the relative strength of the two giants.

PYMNTS research found that 38% of Prime users purchased fashion products during Prime Day, and Amazon's lead in apparel was durable and resilient year-over-year, with sales of apparel and accessories remaining virtually unchanged. During Walmart+ Weekend, 56% of Walmart+ users purchased apparel and related accessories.

But with Walmart+ having about a quarter of Prime's membership, Amazon still dominates the U.S. apparel market and its lead remains difficult to shake.

In the first quarter of this year, Amazon’s share of apparel spending was 14%, more than double Walmart’s 6.2%, according to the PYMNTS report.

Amazon's product range for clothing and accessories may not be as extensive as Walmart's, but its number of brands makes it accessible to a wider audience. Amazon has more than 50 in-house fashion brands and counts Zappos and ShopBop among its retail brands.

Still, Walmart is racing to catch up, recently experimenting with shoppable videos and influencer marketing, and a partnership with online thrift giant thredUP that lets consumers browse thousands of items online with free shipping on orders over $35.

Amazon’s “new rival”

Competitors trying to overtake

Meanwhile, as nearly every U.S. retailer struggles with excess inventory, they are taking action in beauty, apparel and fashion-related categories, where Amazon and Walmart are facing more and stronger competitors.

“Apparel also saw a low-single-digit decline in the second quarter, but saw meaningful growth in women’s fashion-forward categories and performance apparel, building on strong sales growth in the category over the past two years,” said Target’s chief growth officer.

She added that Target is pinning its hopes on a fall launch of licensed Marvel merchandise, including costumes from the “Avengers” universe, and will bet on the market for moisturizing beauty products with plans to have 250 Ulta beauty stores in select locations by the end of the year.

Meanwhile, Kohl's apparel business also took a hit, with CEO Michelle Gass saying sales of athleisure and outdoor apparel remain a strength for the company, but the overall activities division slowed, in part due to supply chain-related challenges for athletic shoes and strong growth achieved last year.

Michelle Gass said the teen apparel category also performed poorly, but men's apparel performed well, and Kohl's added brands including Tommy Hilfiger, Hurley and Calvin Young to the category.

Editor✎ Ashley/

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