Amazon to overtake Walmart as top U.S. apparel seller in 2018

By

Gabriella Lacombe

Published
Sep 12, 2018

Amazon will become the number one seller of apparel in the U.S. in 2018, according to Wells Fargo analysts. 

Amazon's apparel and footwear gross sales are expected to top $30 billion this year, while Walmart's are expected to cap off at around $20 billion. 

Under CEO Jeff Bezos, Amazon shares have increased by 22 percent in the past six months and 100 percent over the past year, at one point reaching $1 trillion in market value. Wells Fargo predicts the company's shares will top $2,300 in 12 months.

"Amazon dominates the online market for apparel and fotwear (35 percent of share, or four times the #2 player) and they even have remarkably high market share in the total apparel/footwear market in the U.S.," said Wells Fargo analyst Ike Boruchow in a note cited by CNBC. "The gross merchandise value (GMV) of apparel and footwear that was sold on Amazon's platforms approached $25 billion in 2017," a five to six-time increase from the amount of soft goods sold by the e-commerce company five years prior. 

Citigroup analysts also predict the number of Prime subscribers to reach 275 million over the next decade.

Amazon shares were down 0.67 percent on Monday.