Many shops had a solid holiday quarter, but the threat of Amazon.com making more inroads is always present, according to an expert.
Wells Fargo analyst Ike Boruchow concluded in a recent assessment tat while many shoppers returned to brick-and-mortar stores in 2021, compared to a Covid-dampened 2020, little has been done to deter Amazon’s aspirations to continue growing.
He said even if online sales fall from the frenzied levels witnessed during lockdowns, the shift to e-commerce that occurred during the pandemic appears unlikely to fade.
Even though some shoppers returned to the mall, Amazon, the country’s top seller of clothing and shoes, was unaffected.
Boruchow estimates that the company now sells more than $65 billion in apparel and footwear, which is nearly double the total for Walmart (WMT), the company’s No. 2 competitor.
He predicts that Amazon’s apparel and footwear sales will exceed $73 billion this year, thanks to its investments in fulfillment centers.
With the majority of exorbitant spending now behind it, Amazon appears poised to profit from its retail operations as well.
Unsurprisingly, Amazon remains at the top of consumers’ minds.
Boruchow’s survey of 1,000 Amazon shoppers revealed that they are now more willing to consider Amazon as a source of apparel and footwear than they were prior to the pandemic.
Boruchow said: “Fashion Apparel is now a top 3 category US Amazon shoppers are most likely to purchase on Amazon up from #9 last year pointing to the headway Amazon has made towards becoming a destination for fashion apparel in the eyes of the consumer,”
Amazon reported a better-than-expected fourth-quarter last month, although its online stores business was a bit weaker than Wall Street anticipated.