Amazon’s two-day Prime Day event starts July 11, and retailers are hoping it lifts the restraint consumers have been exhibiting since the beginning of the year. Call it Christmas in July.
The annual sales orgy began in 2015 to mark Amazon’s 20th anniversary.
Placer.ai reported consumers are feeling the spending itch, with visits to retailers like Walmart and Target. As of mid-June, visits to Walmart were up 11% and Target 5.6% compared to six weeks earlier.
Placer.ai noted there were few promotions in the first half of the year, and consumers restricted their spending to special occasions like Valentine’s Day, Mother’s Day and Father’s Day. That could be good news for Amazon. Placer.ai’s Ethan Chernofsky noted:
“Many consumers have delayed big-ticket items in recent months due to high interest rates and the larger macroeconomic situation, and these shoppers may use the July sales as opportunities to purchase these items at a discount.”
And with back to school coming up, parents are likely to take advantage of the Prime Day markdowns to stock up on children’s clothing and school supplies, Chernofsky added. He cautioned, however, it’s likely consumers will be more cautious, eschewing expensive impulse buys.
Amazon’s brick-and-mortar competitors also are likely to offer deals, both on- and offline, and extending before and after Amazon’s Prime Day. Walmart Plus Week begins July 10 and will run through the 13th, while Target’s Circle Week will run July 9-15 and Best Buy’s Black Friday in July is set for the 10th through the 12th to parallel Amazon.
“The first half of 2023 has brought its fair challenges to the retail space. But, as retailers begin busting out the big discounts in July, the tide may be turning ahead of a critical back to school period,” Chernofsky said, calling the Prime Day impetus the shot in the arm retail needs.
The Food Institute Podcast
Innovation isn’t accidental; companies that successfully innovate are rigorous and disciplined. SnackFutures Mondelez insights lead Barbara Schandl joined The Food Institute Podcast to discuss food innovation strategies in 2023 and shared her viewpoints on uncovering team members’ hidden skills and how curiosity is key for food industry success.