The apparel and accessories market is a highly competitive space, with major retailers vying for a larger share of customers’ spending.
“Share of Wallet” or SOW represents the percentage of a customer’s total spending that goes towards a particular retailer. By tracking SOW over time, retailers can gain valuable insights into their customers’ preferences, as well as the competitive landscape of the market.
Pyxis analyzed the share of wallet for apparel and accessories for four major retailers: Target, Zara, Gap, and Walmart and how the SOW for each retailer has changed over time, from 2017 to 2020.
Pyxis found that Target has consistently had the largest share of wallet among the four retailers, with around 25% of customers’ total spending on apparel and accessories going towards Target. Zara comes in second place, with around 18% of SOW, followed by Gap with around 13%, and Walmart with around 10%.
However, what is most interesting about our data is how the SOW for each retailer has changed over time. While Target’s SOW has increased slightly from 2017 to 2020, the SOW for Zara, Gap, and Walmart has all decreased over the same period.
What could be driving this trend? There are likely several factors at play. For one, Target has invested heavily in expanding its product selection, partnering with popular brands and designers, and improving its e-commerce capabilities. These efforts may have helped to attract and retain customers in the highly competitive apparel and accessories market.
Another factor that could be contributing to Target’s success is its marketing and branding efforts. Target has positioned itself as a stylish, affordable, and inclusive retailer, which may have resonated with customers and helped to differentiate it from competitors.
In contrast, Zara, Gap, and Walmart may be facing increased competition from other retailers in the apparel and accessories market. Zara may be facing increased competition from fast-fashion retailers like H&M and Forever 21, while Gap may be struggling to compete with other mid-range retailers like Old Navy and H&M. Walmart, on the other hand, may be facing increased competition from online retailers like Amazon.
While Target has been successful in increasing its SOW over time, the trends for Zara, Gap, and Walmart suggest that these retailers may be facing increased competition in the market. By analyzing SOW and other metrics, retailers can gain a better understanding of their customers and make informed business decisions to stay ahead in this highly competitive market.
If you want to find answers about YOUR customers, competition, or market, contact Pyxis today.
