Cyberspace: June 29, 2001
Wal-Mart and Kmart have taken apparel offline, citing the category as unprofitable compared with other merchandise sold on the mass merchants’ respective Web sites, www.walmart.com and www.bluelight.com; online apparel sales totaled $2.3 billion in 2000, up from $1.1 billion in 1999, and projections remain strong, with online apparel sales expected to hit $3.5 billion this year and $10 billion annually by 2005, according to New York-based research firm Jupiter Media Metrix; however, some Web retailers are finding that although apparel sells well online, the profits earned from the category must be weighed against the costs related to returned merchandise.
