A week after upending the grocery business, Amazon.com Inc . is taking aim at fashion.
The e-commerce giant’s latest service, which lets customers try on items at home before they buy them, inspired a slump in shares of Macy’s Inc . and Nordstrom Inc ., as well as European online specialists Zalando SE, Boohoo.com Plc and Asos Plc . It was a rerun of what happened to supermarket shares when Amazon announced a $13.7 billion bargain for Whole Foods Market Inc .
The Seattle giant’s Prime Wardrobe service, introduced Tuesday, is” another potential nail in the coffin for the department-store sector ,” Wells Fargo analyst Ike Boruchow said in a note.
Amazon is ramping up its fashion offering after expanding its beachhead in physical retailing by gaining more than 400 Whole Foods storages. The move goes as apparel corporations ranging from Ralph Lauren Corp . in the U.S. to Next Plc in the U.K. struggle to keep up with fickle consumers and online competitor heats up with new investments by manner chains like Inditex SA’s Zara and Hennes& Mauritz AB.
Amazon may also begin selling Nike shoes immediately through its site, according to person or persons familiar with the situation. The prospect sent shoe-retailer inventories tumbling, with Foot Locker Inc. plunging as much as 11 percentage, Finish Line Inc. 5.9 percent, and Dick’s Sporting Goods Inc. more than 9 percent on Wednesday. European sellers Sports Direct International Plc and JD Sports Fashion Plc were down less than 1 percent each in early trading Thursday.