Retail stocks were down huge yesterday, it all started when Macy’s reported their earnings number and the stock took a nose dive dragging the whole retail sector with it; $M -15%, $KORS -11%, $VFC -6.5%. Amazon, however, was printing a new all-time high, immediately mostly everyone on my twitter finance stream concluded that Amazon is the one killing these retailers. As a big time Amazon shopper I have never purchased any clothing from Amazon, so obviously I don’t buy into this argument.
With that being said, Investors Business Daily today reported that Amazon is poised to become the number one U.S apparel retailer by 2017; Amazon is growing in the clothing business, while traditional retailers such as (WMT) and (TGT) are in decline, Blackledge said. A bold call, and while my apparel buying habits might be different than most this is without a doubt a huge possibility. This got me thinking about what apparel stocks have held up well against Amazon and are they likely the next one’s to feel Amazon’s wrath. Children’s Place and Carter’s have held up relatively well against Amazon; as an online buyer, I would feel much more comfortable buying baby clothes on Amazon than a pair of jeans for myself. Children’s Place and Carter’s might be the next in line to feel some Amazon pain.