Dec. 1 at 7:37 PM
Amazon has tightened its lead in U.S. apparel. Wells Fargo expects its apparel and footwear sales to top
$72 billion in 2025, after reaching nearly 13% market share and more than
$67 billion in 2024—over twice Walmart’s business. Amazon surpassed Walmart as the top U.S. clothing seller in 2018.
Amazon’s fashion push began in 2012 as it wooed brands like Kate Spade and Vivienne Westwood. The segment grew at a 40% CAGR for five years, and by 2018 major brands including Nike, North Face, Carter’s, Calvin Klein, and J.Crew were exploring partnerships. Amazon also expanded private labels but scaled them back in 2022; Amazon Essentials now focuses on basics. Wells Fargo estimates private labels represent about 1% of retail sales and roughly 2.5% of apparel.
Amazon’s strength lies in aggregating third-party brands with competitive pricing and free returns. But returns—especially common in apparel—hurt profitability.
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