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Ralph Lauren, Nike best positioned for e-commerce: Goldman Sachs

Best ideas in digital retail
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Best ideas in digital retail

Nike and Ralph Lauren are two of the companies best positioned to take advantage of the growing e-commerce sector, according to Goldman Sachs internet analyst Heath Terry.

Terry forecasted growth of 22 percent in e-commerce in 2016, and said having a distinct brand gives companies more leverage with customers in the lucrative market.

On the other hand, he told CNBC's "Squawk on the Street" on Thursday that companies like Kohl's sell products he considers closer to commodities, and face challenges in the e-commerce marketplace.

"Those are all things that can be sold by Amazon," Terry said.

However, luxury retailers still face a rocky road ahead as they balance increasing online sales with maintaining a network of brick-and-mortar stores. Ralph Lauren recently announced it was and cutting its full-time workforce by about 8 percent, steps that are expected to save the company up to $220 million a year in a move to become more nimble as it restructures. Both Nike and Ralph Lauren are down double digits in trading since January.

Terry also extolled "the strength of the pure plays" or companies that solely focus on internet sales. He noted that bigger internet retailers like Amazon have an inherent advantage in that they are able to invest larger sums in their fulfillment operations, while some start-ups must rely on third-party providers that can get constrained during busy periods.