Wednesday, February 8, 2017

Are vendors and stores headed for a fight over Amazon?

Hanesbrands, the parent of Hanes, Champion, Playtex and a number of other apparel labels, has been aggressively reallocating resources over the last several years to capitalize on retail sales moving from stores to online, but last week acknowledged it’s not been fast enough.

Sales in the fourth quarter missed expectations even though the company saw 28 percent growth in domestic online revenue across channels. On a conference call with analysts, Gerald Evans, CEO, said, “The current scale of our online business was not enough to offset the pressures in U.S. brick-and-mortar.”

Online revenue for Hanesbrands across all channels grew to 11 percent of its domestic sales in the quarter versus eight percent for the full year. Amazon.com became its fifth largest customer in 2016 with sales growing at a “strong double-digit rate.”

Going forward, Hanesbrands will “continue to aggressively follow the consumer.” Assortment will be broadened across online channels and digital will increase to over half of Hanesbrands’ total media spend in 2017. . . . more

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