Amazon Prime Day is almost certain to set new online sales records this week, but the e-commerce giant’s annual shopping holiday doesn’t feel quite so special anymore. It’s not just that Target, Walmart and others now hold blockbuster mid-July sales of their own. These days, shoppers looking for fashion deals can open Shein’s app anytime. Now there’s also Temu, which didn’t exist when Amazon held its 2022 Prime Day, and is now the No. 1 most-downloaded shopping app in the country. TikTok, home of infinite #Sheinhauls, wants to boost its e-commerce sales past $20 billion this year worldwide.
There’s probably enough room for all of these players, and maybe a few more. High inflation and a slowing economy have more consumers in a bargain-hunting mood, which could mean they shift more spending to deals at Amazon, Target or Temu. The National Retail Federation’s annual survey of US back-to-school shoppers found 45 percent were shopping sales more often (in 2019, that figure was 30 percent). And 39 percent of shoppers said they would buy more generic and store-brand products, up from 20 percent pre-pandemic. That’s good news for big-box stores and Amazon, which pushes its in-house labels hard during Prime Day (last year, its Essentials line of basics was the No. 2 most-shopped brand during Prime Day, according to Numerator, a consumer insights data company).
Where does this leave everyone else? While sales around Prime Day have proliferated, it hasn’t yet become a Black Friday-style shopping holiday where anyone who promises good deals can count on a flood of shoppers. Many brands are back to their non-stop discounting habits; there are plenty of “July 4″ sales still ongoing. Prime Day mainly serves to put more pressure on these companies to offer markdowns. Or to join Amazon – Victoria’s Secret began selling lingerie on the marketplace in early June; it was included in Amazon’s initial Prime Day announcement just a couple weeks later.
What Else to Watch for This Week
Tuesday
Amazon Prime Day begins
Aritzia reports results
UK reports May unemployment rate
BoF Insights releases its latest report, on China’s luxury and beauty markets
Wednesday
US reports June inflation data
Thursday
Cucinelli, Fast Retailing report results
Friday
Bastille Day (France)
Burberry reports results
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