L2 Report details Amazon's climb to top American retailer status

By

Obi Anyanwu

Published
Jun 29, 2016

Investment bank Cowen reported in May that Amazon is on pace to become the top American retailer by 2017 surpassing Macy’s. The Seattle-based company has been expanding its fashion presence for a decade since it acquired ShopBop in 2006 and most recently launched seven private fashion labels this year.

 
Digital research firm L2 released a report on Tuesday detailing how Amazon is pushing to the number one spot. The report showed that Amazon leads the way in US apparel and accessories sales, surpassing TJ Maxx, Macy’s, Walmart and Nordstrom and is expected to reach $40 billion in sales by 2018.
 
The report also notes that only 29% of brands in L2’s Digital IQ Index from 2015 currently distributes via Amazon.com and, “while there are a host of traditional early leaders such as Levi’s, Skechers, and PVH, the majority of top sellers fall outside of the traditional brand competitive set and tend to be highly fragmented.” L2 added that Amazon’s success is dependent on a small concentration of core replenishment basics and that the company’s inventory forecasting can keep the core items in stock.

In February, Amazon quietly launched seven in-house brands on its US website including, Franklin & Freeman, Franklin Tailored, James & Erin, North Eleven, Society New York, Scout + Ro and Lark & Ro. The launch marked the first time the online retailer offered its own fashion brand products. The brands have over 1,800 products listed on Amazon ranging from men’s, women’s and children’s apparel and accessories.