• Anne Heaney, Director

Brands Choose Amazon Over Department Stores

One of the biggest fashion retailers in the US is going all-in on Amazon, and it's telling of where fashion is headed.

Amazon now offers a bigger selection of Calvin Klein and Tommy Hilfiger clothing than JC Penney and Macy's do. These brands, both owned by PVH have historically had a strong presence in department stores however our data shows that they are shifting away from this channel in search of greener pastures.

Other brands have been vocal about pulling back from department stores in order to protect their brand image after finding their products are being heavily discounted in those stores.

Michael Kors is one of those brands. The company is trying to reposition itself as a high end retailer and to do so, it is reducing promotions and scaling back from department stores to make the brand less available in the market.

Coach and Ralph Lauren are doing the same after pulling up to 25% of their stock from department stores in 2017 in an effort to preserve the brand's status and protect themselves from the ubiquitous department store discounting.

While department stores continue to struggle, Amazon has been growing its apparel business exponentially. Department store heavy brands are seeing a growing Amazon push into fashion as a plug to the revenue lost from their ailing department store business.

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