Does Amazon or Walmart sell more apparel online? And how does Target fit in? What about apparel-focused merchants? Here is a look at the retailers selling the most apparel online.
Apparel retail chains dominate the top 10 online apparel brands when it comes to 2019 web sales. Eight of the leading apparel retailers in online sales are retail chains, and they include five department stores.
It’s worth noting that, although department stores sell a large volume of apparel online, many are struggling from a lack of investment in omnichannel and ecommerce. J. C. Penney Co. Inc. is a prime example of this, as it is the ninth largest online apparel seller, but has recently filed for bankruptcy.
Some of the most innovative apparel merchants are not yet among those selling the most online, but rather on the list of those growing the fastest.
For example, take born-on-the-web bra retailer Third Love. It is further down the apparel category list, at No. 80 in web sales among apparel-focused merchants based in North America. But it grew its 2019 web sales 51.4%, according to Digital Commerce 360, making it the ninth fastest-growing online apparel merchant.
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CEO and co-founder Heidi Zak says there is no secret to growth she is hiding—she is simply following three key tenets: Focus on brand, product and digital experience. By prioritizing those three pillars, and pricing its products so that it can make money on the first order rather than relying on repeat purchases, ThirdLove (No. 296 in the 2020 Digital Commerce 360 Top 1000) has been able to maintain fast growth even after reaching a high level of sales.
That’s a rare feat. With a few exceptions, most leading online apparel merchants in Digital Commerce 360’s Top 1000 either boast large sales or fast growth, but not both. The largest online players are mostly retail chains with both feet firmly planted in stores, while the fastest growers are exclusively born-on-the web brands, mostly newcomers bringing a fresh take to a subcategory.
While the fast-growing retailers are relative newcomers who may be key players in online apparel retail’s future, there is a lot to be said for the power of size and brand recognition. Although they are not apparel-focused, mass merchants Amazon.com Inc. (No. 1), Target Corp. (No. 12) and Walmart Inc. (No. 3) comprised 31.3% of North America’s 2019 online apparel market, up from 29.5% in 2018 and 27.2% in 2017, according to Digital Commerce 360 estimates.
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With more than $35.00 billion in apparel web sales in 2019 that represented 28.8% of the online apparel market, Amazon sells the most apparel online of any retailer, according to Digital Commerce 360 estimates. In fact, Amazon captures 11.1% of all U.S. retail clothing purchases. This data reflects Amazon’s own sales of apparel it has purchased from suppliers as well as apparel sold by other merchants on the Amazon Marketplace.
Between big brands, companies with a historic stronghold in the category and innovative upstarts, the leading apparel merchants are diverse. Each are contributors to the online apparel category and are shaping this large category’s future.
This article is an excerpt from the 2020 Online Apparel Report. For more detailed data and analysis like this, purchase the 2020 Online Apparel Report for $399. Digital Commerce 360Gold and Platinum membersreceive a complimentary copy of this report as a part of their membership.
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As an expert in the field of e-commerce and online retail, I can confidently delve into the intricacies of the article and provide valuable insights into the dynamics of the online apparel market. My depth of knowledge stems from a comprehensive understanding of the e-commerce landscape, including key players, market trends, and growth strategies.
The article explores the landscape of online apparel sales, focusing on major retailers like Amazon, Walmart, and Target, as well as emerging players such as Third Love. Let's break down the key concepts discussed in the article:
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Top Online Apparel Retailers in 2019: The article identifies that eight of the top 10 online apparel brands in 2019 are retail chains, with five of them being department stores. However, it highlights that some department stores are struggling due to a lack of investment in omnichannel and e-commerce.
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Challenges Faced by Department Stores: The article cites J. C. Penney Co. Inc. as an example of a department store facing challenges despite being the ninth largest online apparel seller. J. C. Penney's recent bankruptcy filing is attributed to issues stemming from a lack of investment in omnichannel and e-commerce.
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Growth of Innovative Apparel Merchants: The article introduces the concept of innovative apparel merchants that may not be among the top sellers but are growing rapidly. Third Love, a born-on-the-web bra retailer, is cited as an example, having achieved a 51.4% growth in web sales in 2019. Third Love's success is attributed to its focus on brand, product, and digital experience.
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Strategies for Fast Growth: Third Love's CEO and co-founder, Heidi Zak, emphasizes three key tenets for growth: focusing on brand, product, and digital experience. The company's strategy of pricing products to make a profit on the first order, rather than relying on repeat purchases, is highlighted as a rare feat in the industry.
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Comparison of Online Apparel Merchants: The article contrasts the largest online players, such as Amazon, Target, and Walmart, with the fastest-growing born-on-the-web brands. It notes that the largest players are primarily retail chains with a physical store presence, while the fastest growers are exclusively online brands.
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Market Share of Mass Merchants: The article provides data indicating that mass merchants, including Amazon, Target, and Walmart, comprised 31.3% of North America's online apparel market in 2019. Amazon, with over $35 billion in apparel web sales, is identified as the top online apparel seller, capturing 11.1% of all U.S. retail clothing purchases.
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Diversity of Leading Apparel Merchants: The article emphasizes the diversity of leading apparel merchants, ranging from established brands to innovative newcomers. It recognizes that each contributes to shaping the future of the online apparel category.
In conclusion, the online apparel market is a dynamic and diverse space with a mix of established retail chains, fast-growing online brands, and innovative players. The strategies employed by these merchants, as well as the challenges faced by traditional department stores, underscore the evolving nature of the e-commerce landscape.
