Raphael Stevens

A JetBlue Airways flight bound for New York returned to the Dominican Republic in early February after a passenger allegedly refused to wear a facemask, threw an empty alcohol bottle and food, struck the arm of one flight attendant, and grabbed the arm of another.The Federal Aviation Administration, which detailed the incident in a report, slapped the passenger with a $32,750 fine.Reports of verbal abuse, a failure to comply with the federal mask mandate and assault by airline passengers are on the rise. Airline industry groups, flight attendants and lawmakers want the government to do more to stop it.The Federal Aviation Administration on Tuesday said it has received approximately 3,100 reports of unruly passenger behavior since the start of the year.The agency said it has so far proposed fines totaling $563,800, though recent agency releases describe incidents that allegedly occurred in February, meaning there are likely more cases, and fines, yet to be disclosed.Flight attendants wearing protective masks walk through Hartsfield-Jackson Atlanta International Airport in Atlanta, Georgia, on Wednesday, April 7, 2021.Elijah Nouvelage | Bloomberg | Getty ImagesThe agency implemented a “zero tolerance” policy and threatened fines of up to $35,000 earlier this year, after a series of politically motivated incidents around the time of the riot at the U.S. Capitol on Jan. 6. Passengers have 30 days to contest the fines.Unruly passenger behavior or interfering with flight attendant duties is against federal law.Flight attendant unions say their members have been insulted, shouted and demeaned by passengers, some of them intoxicated, and in some rare cases, violence.A passenger allegedly punched a Southwest Airlines flight attendant last month. The flight attendant lost two teeth after she was struck, according to her labor union.”It’s out of control,” said Paul Hartshorn, spokesman for the Association of Professional Flight Attendants, which represents American Airlines’ more than 20,000 cabin crew members. “It’s really coming to the point where we have to defend ourselves.”Airline executives note that the cases are rare considering the number passengers they are carrying. Transportation Security Administration airport screenings recently topped 2 million a day, the highest since before the coronavirus was declared a pandemic in mid-March 2020.But the issue adds to flight attendants’ stress after a year of job insecurity and health concerns from working in a pandemic, said Sara Nelson, a prominent labor leader and international president of the Association of Flight Attendants-CWA, the largest flight attendant union with some 50,000 members across more than a dozen airlines.”Even if it doesn’t rise to the level of a physical altercation, just the constant bickering and name-calling and disrespect, that wears away at people,” she said.Most of the cases are related to passengers’ refusal to wear masks on board, which the Biden administration mandated earlier this year, though airlines have required it since early in the pandemic. The administration extended it through mid-September.A passenger on a Jan. 7 Alaska Airlines flight from Washington, D.C., to Seattle allegedly pushed a flight attendant when cabin crew walked down the aisle to check whether travelers were wearing face masks, said the FAA, which fined the traveler $15,000.There isn’t one single reason behind the incidents, according to Ryan Martin, a psychology professor at the University of Wisconsin-Green Bay, who has studied anger for about two decades. He said a sense of entitlement is a common thread in displays of anger, however.”What we know is that entitlement is correlated with anger, meaning the more entitled you are the angrier you get,” said Martin, the author of “Why We Get Mad: How to Use Your Anger for Positive Change.”Another factor behind disruptive behavior could be readily available examples, such as videos online, of others acting out.”We’ve seen lots and lots of example of people losing their cool and having what I would call tantrums in the last year, very publicly,” Martin said. “Some of that may have modeled a way of dealing with problems for people that isn’t really a healthy, reasonable way to deal with problems.”Increased anxiety returning to travel might also have heightened tensions, he added, though he noted that one of the better indicators for whether someone will turn violent is that they believe in violence to solve problems in the first place.Pleas to do moreSen. Jack Reed, D-R.I., plans to introduce legislation before the end of this month “that would cover abusive passenger behavior on board flights” and against TSA officers, spokesman Chip Unruh told CNBC.On Monday, Airlines for America, which represents most large U.S. carriers, along with several industry labor unions, wrote Attorney General Merrick Garland urging him to direct the Justice Department to “commit to the full and public prosecution of onboard acts of violence.”At a hearing last week, Rep. Bennie Thompson, D.-Miss., chairman of the House Homeland Security Committee, and Rep. Sheila Jackson Lee, D-Texas, asked Homeland Security Secretary Alejandro Mayorkas about what the agency is doing to combat the assaults and other unruly behavior on planes and at airports.”We also have prepared federal air marshals to address any act of violence that they themselves observe while on flights,” Mayorkas said. “Importantly, we are working with law enforcement to ensure that these acts are met with the full force of federal law. These individuals who commit these heinous acts are prosecuted to the full extent of the law.”Nelson, the union leader, says a currently voluntary TSA self-defense course for flight attendants should be part of their paid, mandatory training provided by airlines.Tactics limitedSouthwest Airlines and American Airlines last month delayed plans to resume alcohol sales for much of the cabin, while United Airlines scaled its plans back to mainline flights over 800 miles. The changes came at the urging of flight attendant unions, following the attack on the Southwest crew member.Brady Byrnes, managing director of flight service at American, told staff: “We also recognize that alcohol can contribute to atypical behavior from customers onboard and we owe it to our crew not to potentially exacerbate what can already be a new and stressful situation for our customers.”A bar at Dallas/Fort Worth International Airport. May 28, 2021Leslie Josephs | CNBCBoth Nelson and Hartshorn, the American Airlines flight attendant union spokesman, said it’s key to keep intoxicated travelers off planes. Before allowing passengers to board, some gate agents remind travelers that they can’t bring their own alcohol on board”At the gate we can handle it but at 35,000 feet that becomes a serious problem really quickly,” said Hartshorn. He said some of the incidents are between passengers, forcing flight attendants to step in.Flight attendants are trained to de-escalate arguments with passengers, unions say. Nelson, a 25-year flight attendant at United, noted that one challenge is that said flight attendants have fewer tools than usual to address disruptive passengers.One tactic for dealing with a disruptive passenger can be moving them to another seat, but planes are flying fuller, leaving fewer options, she said. Catering services have also been limited during the pandemic, so offering passengers food or a beverage to try to calm them down is not always possible.Clearer messaging about the rules and consequences, from airport bars to public officials would help, she said.FAA Administrator Steve Dickson, a former Delta pilot, has made several media appearances to warn travelers about the consequences of bad behavior. Last week he discussed fines and potential jail time on TMZ. The FAA has also posted frequently on social media warning travelers to behave or face consequences.One Dallas/Fort Worth International Airport based-American Airlines flight attendant told CNBC the increase in unruly passenger behavior has discouraged her from pressing passengers to wear masks if they refuse.”If I see it get heated, I’ll back away,” said the flight attendant, who spoke on the condition of anonymity because she was concerned it could jeopardize her job.She said she hasn’t experienced an unruly traveler but added, “I think it’s a matter of time.” More

In this articleWNiraj Shah, chief executive officer of Wayfair, attends the annual Allen & Company Sun Valley Conference, July 10, 2019 in Sun Valley, Idaho.Drew Angerer | Getty Images News | Getty ImagesWayfair expects advancements in 3D technology to improve the customer experience and bring more shoppers online, chipping away at brick-and-mortar sales.This is largely why the online home goods retailer continues to experiment and invest in technologies such as augmented reality and virtual reality, which can make it easier for potential customers to visualize products in their homes.”AR/VR is certainly a space we’ve been playing with for quite a while now, and we do believe that over time it can have a meaningful impact in terms of making it easier to shop for your home from your home,” said Steven Conine, co-founder and co-chairman of Wayfair, at the Jefferies Virtual Consumer Conference on Tuesday.The company thinks this technology could be useful in enhancing user experience even in brick-and-mortar locations. Wayfair is already experimenting with a brick-and-mortar pop-up shop, which features a design services team that can help customers furnish their spaces.”Ideally, I think at some point in the future every home in the U.S. will have a 3D model associated with it,” Conine said. “We could have a design services team in our store who could give you a very personalized experience and actually help you visualize products in your space, help guarantee that it will fit, it will flow well and it’s the look and style you want.”Wayfair saw a surge in sales during the pandemic as consumers bought office furniture to work at home and decor to brighten up their living spaces as they spent more time there.Wayfair CEO Niraj Shah said he is not worried about seeing a decline in sales because of the nature of home improvement.”There’s a never-ending list of projects or products you want for your home,” Shah said. “There is always something you are in the market for.”The company’s stock has risen more than 36% this year, putting its market cap at just above $32 billion. More

A Warby Parker’s store in The Standard, Los Angeles, California.Michael Buckner | Getty ImagesEyeglass brand Warby Parker said Tuesday it has confidentially filed for a stock market listing in the United States.The New York-based company said in a press release that its public listing is expected to take place after the Securities and Exchange Commission completes its review process, which is still subject to market conditions.Warby Parker raised $120 million in its most recent 2020 funding round, giving it a value of $3 billion, according to PitchBook data.Warby Parker joins a growing list of consumer-facing companies that have debuted or are set to soon on Wall Street, in what is a hot market coming out of the coronavirus pandemic. Jessica Alba’s Honest Co. recently went public, along with the scrubs-maker Figs. Silicon Valley’s favorite shoe brand Allbirds is reported to be preparing for an IPO, while salad chain Sweetgreen filed confidentially on Monday.Warby Parker was founded in 2010 by a group of entrepreneurs who had a vision to disrupt the traditional eyewear industry. The company uniquely allows customers to choose and try on glasses from the comfort of their homes. Warby Parker has grown from an online-only operation, to running dozens of stores across the country.Warby Parker’s investors include General Catalyst, Tiger Global Management, Forerunner Ventures, Spark Capital and Menlo Ventures.Warby Parker is a four-time CNBC Disruptor 50 company.Sign up for our weekly newsletter that goes beyond the list, offering a closer look at CNBC Disruptor 50 companies, and the founders who continue to innovate across every sector of the economy. More

White House chief medical advisor Dr. Anthony Fauci said Tuesday the highly contagious delta variant is the “greatest threat” to the nation’s attempt to eliminate Covid-19.Delta, first identified in India, now makes up about 20% of all new cases in the United States, up from 10% about two weeks ago, Fauci said during a White House news conference on the pandemic.He said delta appears to be “following the same pattern” as alpha, the variant first found in the U.K., with infections doubling in the U.S. about every two weeks.”Similar to the situation in the U.K., the delta variant is currently the greatest threat in the U.S. to our attempt to eliminate Covid-19,” he said.CNBC Health & Science Read CNBC’s latest global coverage of the Covid pandemic:Fauci declares delta variant ‘greatest threat’ to the nation’s efforts to eliminate Covid Biden administration to say it won’t hit its Fourth of July vaccination goalCovid boosters in the fall? As calls grow for third shots, here’s what you need to know WHO says delta is the fastest and fittest Covid variant and will ‘pick off’ most vulnerableFauci’s comments come after CDC Director Dr. Rochelle Walensky on Friday urged Americans to get vaccinated against Covid, saying she expects delta to become the dominant coronavirus variant in the U.S.Studies suggest it is around 60% more transmissible than alpha, which was more contagious than the original strain that emerged from Wuhan, China, in late 2019″As worrisome as this delta strain is with regard to its hyper transmissibility, our vaccines work,” Walensky told the ABC program “Good Morning America.” If you get vaccinated, “you’ll be protected against this delta variant,” she added.The United Kingdom recently saw the delta variant become the dominant strain there, surpassing alpha, which was first detected in the country last fall. The delta variant now makes up more than 60% of new cases in the U.K.Health officials say there are reports that the delta variant also causes more severe symptoms, but that more research is needed to confirm those conclusions. Still, there are signs that the delta strain could provoke different symptoms than other variants.Fauci said Tuesday the U.S. has “the tools” to defeat the variant, urging more Americans to get fully vaccinated against Covid and “crush the outbreak”The Biden administration said earlier Tuesday that it likely won’t hit President Joe Biden’s goal of getting 70% of American adults to receive one vaccine shot or more by the Fourth of July.”The effectiveness of the vaccines, in this case, two weeks after the second dose of Pfizer-BioNTech was 88% effective against the delta and 93% effective against alpha when dealing with symptomatic disease,” Fauci said, citing a study.The World Health Organization said Friday that delta is becoming the dominant variant of the disease worldwide.On Monday, WHO officials warned the variant is the fastest and fittest coronavirus strain yet, and it will “pick off” the most vulnerable people, especially in places with low Covid-19 vaccination rates.It has the potential “to be more lethal because it’s more efficient in the way it transmits between humans and it will eventually find those vulnerable individuals who will become severely ill, have to be hospitalized and potentially die,” Dr. Mike Ryan, executive director of the WHO’s health emergencies program, said during a news conference.Delta has now spread to 92 countries, Maria Van Kerkhove, the WHO’s technical lead for Covid, said Monday. She said, “unfortunately we don’t yet have the vaccines in the right places to protect people’s lives.”The WHO has been urging wealthy nations, including the U.S. to donate doses. The Biden administration earlier Monday detailed where it will send 55 million vaccine doses, the majority of which will be distributed through COVAX, the WHO-backed immunization program.”These vaccines are highly effective against severe disease and death. That is what they are intended for, and that is what they need to be used for” Van Kerkhove said. “This is what COVAX and WHO and all of our partners have been advocating for, that these vaccines reach people most at risk.” More

Longtime crypto bull Meltem Demirors reiterated her confidence in the cryptocurrency Tuesday, telling CNBC she believes the correction in bitcoin is simply weeding out the investors with “paper hands.”Paper hands is a term used in the crypto community to characterize people who sell a digital asset such as bitcoin when turbulence strikes markets. It’s the opposite of so-called diamond hands, or ardent believers who say they will hold for the long term.”We had 200 days of market expansion. You can’t have a number go up forever. That doesn’t happen in any market,” Demirors said on “The Exchange.” “What we’re seeing is a correction, a contraction, and a lot of what is getting shaken out is what we call the ‘paper hands,’ the ‘weak hands.'”Demirors, the chief strategy officer at digital asset investment firm CoinShares, pointed to transaction activity on the bitcoin blockchain to support her view.”There’s a lot of retail that entered, didn’t do their research, and is now selling. There are not a lot of long-term holders selling,” she said. “If we look at on-chain activity, wallets that have been holding for a long time have actually been using this opportunity to accumulate.”Demirors’ remarks on CNBC follow a wild ride for bitcoin Tuesday, which began with a heavy drop below the key $30,000 support level before bouncing back into positive territory in the afternoon. Analysts had been watching the $30,000 level after the cryptocurrency experienced a series of losses in May.Earlier Tuesday morning, Wall Street strategist Tom Lee had told CNBC that the world’s largest cryptocurrency by market value faces a rough technical picture in the near term but that he still believes that bitcoin by market value could reach $100,000 per token by the end of 2021.Like Demirors, Lee said he believes a lot of the recent selling has been from retail traders who jumped into bitcoin earlier this year when the cryptocurrency was marching higher toward its all-time high near $65,000 in April.”I think we’re going to continue to see consolidation here,” Demirors said. “There is a lot of macro-uncertainty. Obviously, there’s a lot of uncertainty around policy. There’s also a lot of negative headlines.”China has recently been intensifying its crackdown on cryptocurrency.”I think part of this is just the cycle we go through every several years with crypto, but we are seeing a lot of new inflows. We are seeing a lot of activity, in particular, on the market side,” Demirors said.While Demirors said “bitcoin has always been volatile,” she explained that during the steep pullback in May, there was “a bunch of leverage coming off across the board. Now, we’re done deleveraging. Now we’re seeing a lot of cash selling.”  More

Jalen Suggs #1 of the Gonzaga Bulldogs moves the ball against Tyger Campbell #10 of the UCLA Bruins in the Final Four semifinal game of the 2021 NCAA Men’s Basketball Tournament at Lucas Oil Stadium on April 03, 2021 in Indianapolis, Indiana.Trevor Brown Jr | NCAA Photos | Getty ImagesEducational benefits.It’s the one term that appears to separate amateurism at the college-level sports and professional leagues. On Monday, the Supreme Court sided with student-athletes when it affirmed lower court rulings that antitrust law prevented the NCAA from restricting payments to athletes for items related to the benefit of their education, including compensation for internships.The case was initially brought by Shawne Alston, a former West Virginia running back, and other student-athletes. And essentially, the ruling means the NCAA can no longer regulate reimbursable items that student-athletes get. Meanwhile, schools will need to decide what is reimbursable under educational benefits.Attorney Irwin Kishner called the ruling an additional “erosion of the NCAA’s monopoly of collegiate and amateur sports.” And with states ready to enforce players being compensated for their intellectual property — including their name, image, and likeness, or NIL — “It’s two wins for the athletes,” Kishner said.Opening Pandora’s box?Kishner, co-chair of the sports group at law firm Herrick and the firm’s executive chairman, said Monday’s ruling allows universities to better support student-athletes with resources and “encourage schools to have a lot more reimbursable educational costs.”But defining educational benefits is the new challenge. The Supreme Court left that part up to the NCAA and schools to figure out.But again, paid internships would be allowed after the ruling. For example, if a top football player is a finance major at a superior Division 1 program and offered a $300,000 internship at a Wall Street firm run by a school alum –- is it truly related to education? Kishner predicted possible “bidding wars between institutions whose main purpose is to provide higher education to their students. And now they’re going to be focusing on building these programs and spending big money to entice the best players and have the most competitive programs.”Len Elmore, a former National Basketball Association player, said “institutional integrity” will be critical. Elmore is a professor at Columbia University and agreed with the ruling. He added student-athletes should be compensated in some fashion. But if specific compensation is used to land top recruits, things can get dangerous and unfair.”I can hear Pandora’s box creaking,” Elmore said. “So much can be defined with educational benefit.”Clemson Tigers Quarterback Trevor Lawrence (16) fakes a handoff to Clemson Tigers Running Back Travis Etienne (9) during the first quarter of the game between the Clemson Tigers and the Syracuse Orange on September 14, 2019, at the Carrier Dome in Syracuse, NY.Gregory Fisher | Icon Sportswire | Getty ImagesGetting fair market valueThough there could be more challenges, the ruling on Monday didn’t tackle if student-athletes should be paid money for participating in NCAA events that attract billions of dollars. Eventually, that could be a more significant matter wrapped up in the legal process.In the meantime, compensation for NIL is still coming, starting in July. States including Florida, Georgia, Texas, Alabama and New Mexico will allow student-athletes to profit from their intellectual property outside of educational institutions. This means players can accept money to make appearances, sign autographs, do local car dealership commercials and even profit from an NFT sale.The NCAA is preparing for the landscape to change but also hoping a federal law is established to assist with NIL compensation. That looks unlikely over the next two weeks, though, but hearings have taken place. Elmore said without uniformity surrounding NIL, college sports would become more unstable.”Chaos is not going to work,” he said, suggesting players and schools educate themselves on “fair market value.” That could also help enforce institutional integrity.  “You know when it’s a sweetheart deal as opposed to a fair market deal,” Elmore said. “If a local car dealership pays a kid $50,000 to sign autographs, it stinks. But, that’s what they will go on — fair market value.”Former NBA player Jerome Williams said states with established NIL laws would “have a competitive edge” until a federal law is established.Williams founded Alumni Pros Global Sports, a firm launched in January that helps players leverage their NIL. He said elite players could earn more than $10 million if they leverage their NIL correctly. Alumni Pros use a NIL valuation system to help players understand their current fair market value.”It gives you an IP score, and that is very inherent to getting value to what that player is worth right now,” Williams said. “Once you’ve quantified this information, the sponsor dollars will be lined up for certain individuals if you’re of that caliber.”Athletes, especially outside of football and basketball, will also need to familiarize themselves with sporting territories. For instance, one state could value and support other programs outside of the more prominent sports. Hence, baseball or softball players could capitalize more from NIL, depending on the region.Williams estimated the firm would see an “uptick after July 1 as more athletes are made aware of NIL in each state or if there is a federal law coming.”Williams echoed Elmore when asked about the advice he would give a student-athletes following Monday’s ruling and state NIL on the horizon.”Educate yourself,” said Williams. “It took a lot of former athletes a long time to get to this point. And it was all due to education – trying to make people see through the lines.”What’s good for a softball player, soccer player; lacrosse, might not be good for a basketball player, football, swimmer, or someone on the track and field team,” Williams added. “So you have to educate yourself with the sport that you’re in.” — CNBC’s Tucker Higgins contributed to this article. More

In this articleAMZNWMTEmployees make preparations for a launch party at Amazon.com Inc.’s new fashion photography studio in the Shoreditch district of London, U.K.Simon Dawson | Bloomberg | Getty ImagesNo matter what Amazon and Walmart tout during Prime Day, clothing will be on shoppers’ minds this week as consumers prepare to reunite with friends and family or look to accommodate extra pandemic pounds.Competition in the apparel space is more cutthroat than ever. Amazon recently unseated Walmart as the top apparel seller in the U.S. and both companies have a desire to woo fashion-forward shoppers, not just help stock up on the basics.Vincent Quan, associate professor at the Fashion Institute of Technology, said the two retailers can drive more sales if they keep up with trends, along with selling socks and basic T-shirts.”The historic turn rate of fashion goods is faster, and that’s an important component because faster turn means additional purchases,” he said.Amazon Prime Day started Monday and ends Tuesday. Walmart has an overlapping sales event, Deals for Days, that began Sunday and runs through Wednesday. Other apparel-focused retailers are offering up their own deals, including Target, Kohl’s and resale website, ThredUp.Online and in stores, shoppers can find dresses, shorts and other wardrobe additions at Walmart for up to 60% off — along with a mix of other discounted items from puzzles to cordless vacuums.Amazon began slashing clothing prices two weeks before Prime Day. It is now promoting “The Prime Day Big Style Sale,” which includes discounts on active and loungewear for up to 40% off, while Amazon’s own apparel brands are up to 30% off.Guests pose during the Amazon Music Unboxing Prime Day event on July 11, 2018 in Brooklyn, New York.Kevin Mazur | Getty ImagesAmazon often uses Prime Day to point customers toward its own brands. Last year, sales of Amazon’s brands made up 15% of its total sales and, when excluding third-party sales, a quarter of the total, according to consumer transaction data collected by 1010data. That includes sales of Amazon-made devices, such as Echo smart speakers, Fire TV streaming sticks and tablets.Shoppers are taking notice of the apparel promotions. Among the clothing, shoes and jewelry products on Amazon, Under Armour has been the top brand with about 15% of the best-selling items, followed by Carter’s and Levi’s with 11% of the top sellers and Amazon Essentials with 7%, according to a note on Tuesday by BMO Capital Markets.Golden moment for apparelClothing sales cratered during the pandemic as consumers had few reasons to dress up. That trend has reversed. Apparel sales are up 46% so far this year compared with the same period in 2020 and 7% compared with the period in 2019, according to The NPD Group, which tracks retail trends.Rising swimwear and denim sales in the spring were among the earliest indicators of the comeback, NPD apparel industry analyst Kristen Classi-Zummo said. Swim is up 19% so far this year compared with 2019 and sales of jeans have risen 10% compared with 2019, according to NPD.Three major factors have lifted clothing sales, she said: Americans are going out and preparing for the return to the office and the classroom in the fall. A new fashion cycle of looser fitting denim has rippled through the wardrobe, inspiring a search for tops and shoes that match.Then, there are the people who no longer fit into old clothes. Nearly 40% of women and 30% of men said they are wearing a new size, according to an NPD survey of consumers in the spring. They credit exercise in the home gym or blame snacking because of stress for the change.The pandemic pushed even reluctant shoppers who prefer to touch and feel clothes at the mall toward websites and apps. Apparel dollars spent online accounted for about 24% of total apparel sales in 2019, according to NPD data. That rose to 34% in 2020.”We have seen apparel sales online jump in a year what would have taken five years,” Classi-Zummo said. “I don’t anticipate online [apparel sales] going back to where it was.”Jockeying for top spotAs the pandemic shifted more shopping online, Amazon overtook Walmart as the top apparel seller , according to a Wells Fargo report in March. Wells Fargo estimates Amazon’s apparel and footwear sales in the U.S. grew by roughly 15% in 2020 to more than $41 billion, which is 20% to 25% above rival Walmart.The e-commerce giant is nipping at Walmart’s heels in more ways than one. With more than 1.3 million employees worldwide and a rapidly growing headcount, it’s poised to snag Walmart’s spot as the nation’s largest employer as soon as next year, according to the World Economic Forum. By 2022, analysts expect Amazon will surpass Walmart and become the largest U.S. retailer.Amazon Prime Day 2021 coverageRead more about what Amazon and others have planned for this year’s sales events:First day of Amazon’s megasale draws most online spending so far this year, Adobe saysAmazon Prime Day is on. These are the deals you can skipHow retailers are looking to win your business on Amazon Prime DayTarget looks to lure shoppers with deals on groceries in its Prime Day rival saleAmazon Prime Day 2021: Best deals of Day 2 to shop right nowThe retail giants compete across many categories, but apparel has become an area where both have sought to gain market share.Walmart has launched fashion-focused private labels: Sofia Jeans, a denim line developed with actress Sofia Vergara; Eloquii Elements, a plus-sized women’s brand inspired by acquired brand Eloquii; Free Assembly, everyday fashion for men and women; and Scoop, a trend-driven line reviving the name of the now-shuttered New York City boutique chain.Like Amazon, it has used its third-party marketplace to broaden selection. One of its partners is ThredUp, a secondhand apparel site that sells brand names at a lower price. It has more than 1,000 apparel brands, including its exclusive labels, according to a company spokesperson.Walmart has added more private label apparel brand. It debuted Free Assembly, an exclusive line of everyday pieces for men and women designed by the former chief creative officer at Bonobos.Source: WalmartAmazon found early success by selling a wide range of basics from popular third-party brands like Calvin Klein and Adidas. Over the last few years, it quietly expanded its lineup of private labels. That includes Amazon Essentials, which ranges from maxi dresses to baby clothing. It has exclusive lines like Lark & Ro for women’s fashion, Spotted Zebra for kid’s clothing and Buttoned Down for men’s businesswear. Amazon and Walmart declined to share the number of private label apparel brands they have. But last year, retail analysts attempted to size it up. Amazon has at least 111 private labels that have more than 22,000 products, according to a Coresight Research report published in May 2020. Most are in apparel, with 12,222 products and 87 brands falling into the category, Coresight found at the time.Amazon has increasingly incorporated trendier styles into in-house brands and sold upscale items through online luxury fashion shops. In 2019, it launched The Drop, a line of limited-edition collections curated by fashion influencers, such as Kendall and Kylie Jenner.Source: Amazon.comAmazon has several advantages on its side — chief among them vast swaths of powerful first-party consumer data. It has a loyal base of more than 200 million Prime subscribers that already turn to it to buy everything from household essentials and TVs to books and toys. The majority of U.S. adults start their shopping journey on Amazon.Walmart beats out Amazon with its huge physical footprint, which spans more than 4,700 stores nationwide, not including its Sam’s Club locations.”It allows people to shop things, try things on and just engage with the products in a little bit more meaningful of a way,” said Katie Thomas, leader of the Kearney Consumer Institute. “So I think that works in their favor.”Standing outWhile Amazon and Walmart are a force in online apparel, challenges lie ahead. The retailers must still prove to some consumers that they are fashion destinations. Both have low prices, but the huge selection can overwhelm consumers.Thomas said the retailers need to create a more curated experience and guide customers by working with influencers or suggesting head-to-toe looks.”That can help people figure out how to put things together or how they can achieve a high-low look with things from Walmart or Amazon that were traditionally H&M or Forever 21,” Thomas said.She said apparel is far more complex than other merchandise because shoppers must find the right fit. “It’s just a lot different than shopping for garbage bags and kitchen shears,” she said.Fashion-forward merchandise comes with higher risks, which can hurt profitability, said Janine Stichter, senior vice president of apparel and footwear at Jefferies. Socks and other basics are less likely to get skipped over due to weather, returned because of poor fit or moved to the clearance rack. A cute dress or a top, however, is more likely to get shipped back by shoppers who don’t think it looks quite right or don’t see it as the special outfit they searched for, she said.Online return rates are 30% for women’s apparel and 20% for men’s apparel, according to estimates by Jefferies.Both companies seem to have recognized these challenges. Amazon recently launched a dedicated section on its site for “internet famous products,” making it easier for people to find items that have become popular or gotten featured by an influencer on TikTok. Walmart has tapped into the power of social media, too, by guiding consumers toward potential purchases during shoppable livestreaming events.TikTok influencers Florin Vitan (L) and Alessia Lanza perform a video for the social network TikTok in the “Defhouse”, a TikTok influencers incubator in Milan, on January 21, 2021.MIGUEL MEDINA | AFP | Getty ImagesWalmart will soon have a new tool to tackle a dilemma that’s plagued shoppers and retailers alike. It’s acquiring virtual fitting room start-up Zeekit, which allows customers to upload photos or choose from models that resemble their height, shape and skin tone, so they can see how an item would look. It allows the shopper to share a virtual outfit with a friend on social media, too.With the technology, Walmart could reduce returns and the cost that comes with them.Amazon has launched a dizzying array of fashion-focused services designed to simplify online clothing shopping. It has Prime Wardrobe — a try-before-you-buy service similar to Stitch Fix — and StyleSnap, an in-app image recognition tool that lets users upload a photo of a look and, in turn, serves up a similar product. Another service, called Made for You, aims to make sizing easier by using a shopper’s measurements to produce a custom-fitted T-shirt.It’s also attempted to simplify returns by offering scheduled at-home pickup via UPS or shoppers can drop off unwanted items at Kohl’s.For Laura Bambrick, Walmart and Amazon’s expanding fashion lines have meant more wallet-friendly options. The mom of two, who lives in Naperville, Illinois, began a fashion blog as a hobby when she had her 8-year-old daughter, Claire, as a way to make sure she didn’t slip into a uniform of yoga pants. Laura Bambrick, a mom of two and fashion blogger, said she has shopped more on Walmart and Amazon’s websites as their apparel becomes more fashionable. Yet she said the retailers must overcome stigma.Laura BambrickBambrick sticks to a monthly budget of $150 — stretching those dollars across an average of five pieces from retailers including Old Navy, Target, Amazon, Walmart and some thrifting websites like Poshmark. More items have been coming from Amazon and Walmart, she said, explaining she shops Walmart’s Scoop and Time and Tru brands and orders classic pieces from Amazon Essentials and brands it carries like PrettyGarden.”Five plus years ago, I would have never thought to order any kind of clothing from Amazon, but now there are a lot of cute dresses and things like that,” Bambrick said. “Sometimes, the quality isn’t as great or the fabric isn’t as nice, but their return policy is so good that it’s worth taking a chance.”Yet she said both retailers still have “an uphill battle” because of the stigma of shoppers who see them as cheap quality or unfashionable — a view she used to have, too. Low prices may draw in shoppers, but the clothes must hold up in the laundry. “Once you take that chance and you’re like ‘Oh, it’s not pilling or falling apart’ then you’re more willing to take the chance again and again and it becomes more of a staple in your wardrobe or a staple place to shop,” she said. More