ADDDF - Savvy Shoppers Await Prime Week Deal Competition
2024-07-16 03:45:00 ET
Summary
- Inflation is still affecting retailers - during the last earnings season, 73% mentioned inflation during their earnings calls.
- Walmart raised its full-year guidance as more consumers continued to gravitate towards everyday values and become loyal shoppers.
- While still early in the month, the July discount penetration of 38% rose well above the first quarter 2024 average of 29%, as retailers try to piggyback on Amazon’s Prime Day deals to build customer loyalty and entice shoppers to spend on discretionary items.
- Retailers are protecting margins and have become more strategic on the average promotional discount and discount penetration offered to attract shoppers.
By Jharonne Martis
Amazon Prime Week is back again, and every year, retailers ride the coattails of Prime Week with their own sales. Inflation is still affecting retailers - during the last earnings season, 73% mentioned inflation during their earnings calls. Most retailers also agree that consumers are waiting for promotional events in order to shop, as they are cautious and are trading down. Therefore, during this Prime Week, it is very likely that retailers are betting that heavy promotions will entice shoppers to open up their wallets, especially since consumers have become value-oriented.
Amazon ( AMZN ) will offer its deals primarily online and only to its Prime subscribers, whereas Target ( TGT ), Best Buy ( BBY ), Walmart ( WMT ) and others will offer the same deals in-store and online. Although the event will be held in-store and online, there's no doubt consumers will be doing price comparisons online and on their digital devices....
Savvy Shoppers Await Prime Week Deal Competition