Macy's CEO Terry Lundgren: Apparel Sales Logistics Could Hurt Amazon
A July report from Cowen & Co predicted Amazon’s apparel sales will top $16B, compared to $22.2B for Macy’s in 2015, and predicted Amazon would replace Macy’s as the nation’s top apparel retailer by 2017—but Macy’s CEO Terry Lundgren isn’t so sure.
Lundgren highlights the difficulty the e-retail giant will have with apparel, a business where consumers order the same item in several sizes and send back all the ones that don't fit, along with the one's they don't like, Retail Dive reports.
Amazon is “going to have an interesting challenge when they start getting all those returns coming back online,” Lundgren says. On the flip side, Macy’s has 800 stores nationwide (although, that's 40 less than before), allowing customers to come in and look around without shipping being a factor.
While Lundgren points out an important hurdle for Amazon’s apparel growth, retail futurist Doug Stephens tells Retail Dive the e-retailer’s ultimate goal is to attract more Prime members—not compete directly with apparel giants like Macy’s. [Retail Dive]
