Department stores once dominated the apparel market.
Now they're failing and closing hundreds of stores after years of declining customer traffic and sales.
So where are people shopping for clothes instead?
The answer: Walmart and Amazon.
Walmart claims 8.1% of the US apparel market, followed by Amazon with a 7.4% share and Target with a 4.3% share, according to Morgan Stanley research.
Morgan Stanley ResearchAmazon's share of the apparel market has been growing rapidly over the last several years, from less than 1% 10 years ago to nearly 8% today.
Morgan Stanley analysts expect Amazon to surpass Walmart to become the No. 1 apparel retailer in the US this year. Morgan Stanley ResearchOther companies that have been gaining share of the apparel market include Costco, TJ Maxx, and Ross Stores.
Meanwhile, stores like JCPenney, Kohl's, Sears, and Macy's have been losing customers.
Morgan Stanley Research