Gap CEO Would Consider Using Amazon to Reach Customers

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Business of Fashion:

“To not be considering Amazon and others would be — in my view — delusional,” Peck said at the company’s annual investor meeting Tuesday in San Francisco. “We are always considering all of the opportunities beyond our traditional mix of channels and stores. Amazon is certainly one, and there are others as well.”

Peck, 60, made the remarks after he was asked whether the company might tap Amazon to market products to consumers. Gap has been struggling to reverse a decline in same-store sales, hurt by sluggish traffic at many malls and a consumer shift away from apparel spending. (…)

As Amazon entices more clothing shoppers, it’s poised to become the No. 1 US apparel retailer by next year, according to Cowen & Co. The flow of dollars online has taken a toll on department stores and other traditional retailers. Macy’s Inc. and Nordstrom Inc. both gave disappointing forecasts last week, dragging down stocks across the industry.

​It is fascinating that Amazon is strong enough in general in the U.S. market that its relative weakness in fashion doesn’t matter much thanks to everyone else being even weaker in online fashion.

This is pie in the sky thinking for now, but it makes one wonder how much Zalando could gain by coming to the U.S.

The U.S. market would be challenging on several fronts for Zalando’s model and the company sees itself as an European online fashion retailer (at least for the time being), and for good reason. The European market is a huge opportunity. But still. It’s tantalizing.

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5 comments

  1. […] Gap CEO Would Consider Using Amazon to Reach Customers […]

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  2. […] Gap CEO Would Consider Using Amazon to Reach Customers […]

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  3. […] But what if they never come? Or, what if the GAP CEO changes his mind? Or, more to the point, why does the GAP CEO in the first place consider using Amazon to reach GAP’s customers? […]

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  4. […] Gap CEO Would Consider Using Amazon to Reach Customers […]

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  5. […] Gap CEO Would Consider Using Amazon to Reach Customers […]

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