20 Companies Account for Nearly All Retail & Fashion Profits

20 “super winner” companies now account for 97% of economic profit in the retail and fashion industry, a dramatic increase from 70% in 2010.

This finding is one of many interesting insights released in the “State of Fashion 2019” report from McKinsey & Company and The Business of Fashion.

The study shows increased polarization, with luxury and value advancing and mid-market players falling behind. “Well-known European luxury companies tended to be overrepresented in the top 20, with North American companies coming in a close second.”

Over time North American department stores lost out, with none remaining in the top 20, compared with three 10 years ago — a stark illustration of the fragility of the traditional retailing model.

The report states that 20% of companies represent 128% of the total industry economic profit.

Department Stores & Apparel: The Future is Blurry

Morgan Stanley predicts that the department store share of the apparel market will drop from 24 percent in 2006 to only 8 percent by 2022.

Many analysts continue to predict that, this year, Amazon will become the largest retailer of apparel in the United States. 

Top apparel retailers are ranked as Walmart, Amazon, Target, Macy’s, Kohl’s, The TJX Companies, Gap, Costco Wholesale, Nordstrom, Ross Stores, and JCPenney.

Continue reading “Department Stores & Apparel: The Future is Blurry”