Amazon.com Inc. will overtake Walmart Inc. as the "largest seller" of clothing and footwear in the U.S. within 2018, said Wells Fargo, which also lifted its price target for the e-commerce giant in a Sept. 10 research note.
The Seattle-based company "dominates the online market for apparel and footwear," having captured 35% of the space, or four times the No. 2 player, and has a "remarkably high market share" despite lacking physical stores, according to Wells Fargo analysts Ike Boruchow and Peter Stabler.
The analysts also noted that the gross value of apparel and footwear merchandise sold on Amazon's platforms reached nearly $25 billion in 2017, including third-party sellers, after growing at a compound annual rate of 40% since 2012.
Following the analysis in the online retailer's apparel segment, Wells Fargo raised its price target for Amazon to $2,300 from the previous $2,110, higher than its Sept. 7 close of $1,952.07.
Wells Fargo added that it now expects Amazon's apparel and footwear gross sales to breach the $30 billion mark in 2018, bumping down big-box retailer Walmart "to become the largest seller of soft-goods in the U.S."
The forecast comes amid the e-commerce company's continued push into apparel and footwear.
Earlier in September, Amazon Fashion began offering J. Crew Inc.'s discount line, J.Crew Mercantile, to customers in the U.S. through a dedicated storefront on the online retailer's website.
Amazon also submitted trademark applications for eight apparel lines in June and August, according to filings with the U.S. Patent and Trademark Office.