Amazon.com is now the top seller of clothes in the nation, according to new data from Wells Fargo, as the tech leader earns more profits during the pandemic.
Wells Fargo says the company’s U.S. sales of shoes and clothing, including third-party Amazon-hosted stores, increased by 15% in 2020, hitting $41 billion.
“While this was just a modest growth of 15%, we think demand for clothing was harmed by the pandemic,” the report read.
Still, that number is 20%+ greater than Walmart,
which ranked in at the second spot. And accounts for 11%-to-12% of all clothing sold in the nation as well as 34%-to-35% of all clothing sold online.
Just six other firms sold $10 billion or greater in clothing: TJ Maxx parent TJX Cos., Macy’s Inc., Target Corp., Kohl’s Corp., Gap Inc., and Ross Stores Inc.
Wells Fargo predicted that clothing sales on Amazon will reach $45 billion in 2021, a “modest” 10% increase, with customers buying clothes in stores as the virus passes.
Wells Fargo also said it expects online sales of clothing to be flat this year, although that would still place sales higher than pre-coronavirus levels.
Amazon’s U.S. gross merchandise volume in all industries excluding Whole Foods was $290 billion in 2020, an increase of $9 billion.
“Given that their addressable market increased by $180 billion, this means Amazon was around 50% of online clothing’s sales growth in 2020,” the report said.
The recent Adobe Digital Economy Index discovered that coronavirus gave the e-commerce industry a bump of $183 billion dollars in 2020.
“The pandemic gave us a rare change in online shopping, around a 20% boost, and future income growth will build off this. 2022 is anticipated to be the first trillion-dollar e-commerce year,” Adobe wrote.
Amazon stock has gone up by 71% over the past 12 months, beating the S&P 500,
which is higher by almost 56% for the period.