Amazon.com (AMZN) said Tuesday it will test a new Prime Wardrobe service that implements a try-before-you-buy business model in its latest industry disruption.
Prime Wardrobe allows customers to pick three or more items to try on within a week before paying for anything. Whatever they don’t want, they send back and don’t pay for. If they keep three or four items in their box, they save 10%. If they keep five or more items, they get 20% off their total.
Prime Wardrobe will be tested in beta for now, but customers can sign up to find out when all Prime members will have access to Prime Wardrobe.
The new service expands Amazon’s fashion retail department by including specialty brands outside of Amazon’s private labels. The service will feature more than one million items.
Prime Wardrobe will compete with both typical department stores and subscription clothing services like Stitch Fix, which Evercore ISI analyst Omar Saad said has been gaining steam and growing revenues.
What’s Hot On TheStreet
Amazon has some work to do with Whole Foods: Organic grocer Whole Foods (WFM) needs Amazon’s (AMZN) tech know-how, and it needs it very quickly to slash prices.
TheStreet’s Lindsay Rittenhouse went shopping online at Ohio stores to see how Whole Foods stacked up against Walmart Stores Inc. (WMT) and rival grocer Kroger (KR) . While the results may not be shocking, they show just how much Amazon will have to cut for Whole Foods to be on equal footing with some of its competitors.
The cost of eight everyday food items at Whole Foods, TheStreet found, were nearly double those of the ones at Walmart, but Kroger undercut them both. Whole Foods’ basket cost $38.29; Walmart’s, $19.86; and Kroger’s, $16.58.
With data as shocking as this, it’s no wonder Whole Foods founder John Mackey is in love with Amazon.
Tesla’s stock is out of control: Tesla Inc. (TSLA) shares are expected to have a strong session amid reports Elon Musk’s electric car baby may open a new production facility in China. Such a move would avoid tariffs in the world’s second-largest economy, but risk the ire of U.S. President Donald Trump’s “buy American, hire American” industrial policy, TheStreet’s Martin Baccardax reports.
Tesla’s market cap is now more than $60 billion and climbing, despite the company continuing to lose money. Ford’s (F) market clocks in at $44.7 billion, while General Motors (GM) stands at $51.9 billion.
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