NEW YORK’s fashion week, which will start on February 9th, promises the usual show of glamour, but a more fascinating industry display came a week earlier. On February 2nd Ralph Lauren, a well-known brand, said that the executive it had hired in 2015 to overhaul its business would leave. On February 3rd the Wall Street Journal reported that Macy’s, America’s biggest department store, might be bought by Hudson’s Bay, a smaller Canadian rival. Each is an institution of American retailing. Each is a reminder of how hard it is to keep pace.

Consumer habits have changed especially rapidly in their world. Frocks, bags and shoes are now disproportionately bought online compared with other goods. Last year clothes and accessories accounted for a fifth of e-commerce, estimates Cowen, a financial-services firm; far higher than their 8% share of total retail spending. Cowen expects Amazon to surpass Macy’s as America’s top clothing seller this year.

For manufacturers, such as Ralph Lauren, the picture is more mixed. For some clothing firms, particularly small ones, Amazon offers a new way to reach...Continue reading