Latest performance charts indicate that Amazon.com, Inc. (NASDAQ:AMZN) is crushing the competition as far as retail performance is concerned.
Amazon’s stock is currently trading at its highest value, thus indicating a shift in consumer behavior that favors the company. Some of the companies that are competing against Amazon include Target Corporation (NYSE:TGT), Wal-Mart Stores, Inc. (NYSE:WMT), Macy’s, Inc. (NYSE:M) Sears Holdings Corp (NASDAQ:SHLD) and Kohl’s Corporation (NYSE:KSS) among others.
The above firms are some of the biggest online retail companies that have been competing with Amazon in the online retail space. However, the retail index fund “XRT” gave an analysis of how Amazon has been dominating the online retail market. Market analysts do not expect things to change. Terry Lundgren, the CEO of Macy’s issued a lowered guidance which he claims will affect the entire industry. Lundgren stated that consumer spending in apparel and other similar categories has declined. There is however a significant difference between Lundgren’s guidance and the sales growth that Amazon has been experiencing in apparel.
Researchers claim that Amazon’s accessories and apparel business are currently the major growth areas for the firm and they have also projected that it will continue to expand steadily. The company is soon expected to overtake Macy’s which is currently the largest apparel retailer in the US. Amazon’s apparel sales improved by 19% in the first quarter of 2016 which is a huge margin compared to the improvement experienced Walmart and Target which was 1% and 5% respectively.
Financial services company Cowen & Co. reported that Amazon’s apparel sector experienced 28% growth in every quarter since 2014. Compared to Target which experienced a 3% decrease and a 4% decrease for Walmart. The apparel division has therefore been an important growth and success driver for the company. It has played a significant part in helping Amazon to secure a huge lead in the online retail industry.