BUT ONLINE IS Disruptive & Growing
In 2000, Kmart was the thirdlargest US retailer, with $36 billion in sales; by 2014, its annual revenues had declined by two-thirds. Over the same period, Amazon’s annual sales grew to $89 billion from about $2.8 billion. Alibaba, the market leader in China’s booming e-commerce business, was only a 15-year-old company when in 2014 it filed the largest IPO ever, valued at $25 billion.
According to Cowen analysts, Amazon is expected to surpass Macy’s to become the biggest apparel seller in the US this year. The company’s clothing and accessory sales are expected to grow nearly 30 per cent next year, to $28 billion, Macy’s apparel sales, by comparison, are expected to drop 4 per cent to $22 billion in the period.
Amazon currently claims about 6.6 per cent of the market. That share is expected to increase to 8.2 per cent by next year and further expand to 16.2 per cent within five years, according to Cowen analysts.
By 2021, Cowen expects Amazon to generate $62 billion in annual apparel sales. TJ Maxx is expected to be the No. 2 clothing seller, with $26 billion in sales, and Macy’s is expected to claim the No. 3 spot, with $23 billion in sales.