Amazon may have designs on starting clothing store
07-02-02, 06:44 PM
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Amazon may have designs on starting clothing store
Has anyone heard anything about this? I saw this article in my brother's newspaper today and decided to share it.
By Monica Soto
Seattle Times technology reporter
Amazon.com reportedly is planning to launch an online clothing store in time for the holiday shopping season.
The Seattle-based company would neither confirm nor deny the report.
Meantime, its shares tumbled 17 percent yesterday on a day when the Nasdaq composite index fell to a five-year low. Amazon's shares sank $2.70 to $13.55, off 34 percent from a 52-week high of $20.40.
According to a report in The New York Times that cited unnamed sources, Nordstrom and Gap would be included in the online-clothing-store launch, and may also involve Gap's sister companies, Banana Republic and Old Navy.
Amazon sells a small selection of clothes through partner Target.com, which carries a tab on its site.
Amazon spokeswoman Patty Smith would not comment on the veracity of the report. She said, however, that Chief Executive Jeff Bezos has spoken of entering the category. Bezos has said publicly in the past that Amazon hadn't launched an apparel category because it made the least sense online. (Who wants to buy a dress without trying it on?)
Ragen MacKenzie analyst Allyson Rodgers said the company may have changed its stance for two reasons: The apparel business is now one of the bigger e-commerce categories and Amazon is in a position to focus on expansion.
Amazon, which spent all of last year cutting costs to improve its path to profitability, is now focused on growth.
The company this year has offered deeper discounts on books and free shipping for orders $49 and higher.
Deutsche Banc Alex. Brown analyst Jeetil Patel said the category would make sense if Amazon partnered with an apparel retailer that would handle distribution.
Analysts have for the most part lauded Amazon's partnerships with other retailers such as Best Buy and Target because it doesn't have to store or ship items, which increase operational costs and hack away at the profit line.
Nordstrom spokeswoman Brooke White said she would not comment on rumors, but added, "We would always entertain ideas of ways to further our reach."
Monica Soto: 206-515-5632 or [email protected].
Copyright © 2002 The Seattle Times Company
http://seattletimes.nwsource.com/htm..._amazon02.html
By Monica Soto
Seattle Times technology reporter
Amazon.com reportedly is planning to launch an online clothing store in time for the holiday shopping season.
The Seattle-based company would neither confirm nor deny the report.
Meantime, its shares tumbled 17 percent yesterday on a day when the Nasdaq composite index fell to a five-year low. Amazon's shares sank $2.70 to $13.55, off 34 percent from a 52-week high of $20.40.
According to a report in The New York Times that cited unnamed sources, Nordstrom and Gap would be included in the online-clothing-store launch, and may also involve Gap's sister companies, Banana Republic and Old Navy.
Amazon sells a small selection of clothes through partner Target.com, which carries a tab on its site.
Amazon spokeswoman Patty Smith would not comment on the veracity of the report. She said, however, that Chief Executive Jeff Bezos has spoken of entering the category. Bezos has said publicly in the past that Amazon hadn't launched an apparel category because it made the least sense online. (Who wants to buy a dress without trying it on?)
Ragen MacKenzie analyst Allyson Rodgers said the company may have changed its stance for two reasons: The apparel business is now one of the bigger e-commerce categories and Amazon is in a position to focus on expansion.
Amazon, which spent all of last year cutting costs to improve its path to profitability, is now focused on growth.
The company this year has offered deeper discounts on books and free shipping for orders $49 and higher.
Deutsche Banc Alex. Brown analyst Jeetil Patel said the category would make sense if Amazon partnered with an apparel retailer that would handle distribution.
Analysts have for the most part lauded Amazon's partnerships with other retailers such as Best Buy and Target because it doesn't have to store or ship items, which increase operational costs and hack away at the profit line.
Nordstrom spokeswoman Brooke White said she would not comment on rumors, but added, "We would always entertain ideas of ways to further our reach."
Monica Soto: 206-515-5632 or [email protected].
Copyright © 2002 The Seattle Times Company
http://seattletimes.nwsource.com/htm..._amazon02.html
