Amazon.com Inc.’s Prime Day shopping miner will arrive this year at a good time for bargain-hunting shoppers trying to save money amid soaring inflation.
E-commerce giant AMZN,
It announced Thursday that Prime Day will take place on July 12 and July 13, offering discounts on electronics, subscription services, and more.
The event comes as consumers prepare to head back to school to shop, pursue summer plans, and, for some early birders, begin work on holiday wish lists.
Inflation in the US reached a 40-year high of 8.6%, driving up the cost of basic items such as food and fuel.
“With constrained consumers feeling the pressure of rising commodity costs, they are determined to cut their expenses by finding the best price deals online,” NielsenIQ wrote in a June report on global online shopping events. The report shows that shoppers around the world are turning to the Internet to find the lowest prices.
“Financial polarization and the continued escalation of commodity prices will prompt customers to look for ways to reduce their expenses.”
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Low-income shoppers are already feeling the pressure. Walmart WMT Corporation,
She said during her most recent earnings that she sees shoppers turning to lower-priced items to manage their family budgets.
The data shows that inflation pressure is felt across the income spectrum.
BlackFriday.com says 65% of American consumers have a Prime membership, and of those members, 88% plan to shop on Prime Day. However, shoppers plan to spend an average of $233, down $93 from last year. Nearly half of Americans (47%) said they are waiting for Prime Day to make their biggest purchase this year, with apparel, home décor, headphones and computers expected to be number one.
Amazon is offering a free Prime Day trial membership as part of the event.
Emarketer expects global Prime Day sales to reach $12.52 billion, and the largest, or $7.76 billion, in US sales in the US is expected to rise 16.8%.
“This is due to increased bargain-seeking behavior from consumers and a more favorable timing of mid-July this year, compared to June of last year, to meet the back-to-school demand,” eMarketer wrote.
“Back to the office, season wedding and summer events, and the resumption of major summer trips will also drive demand for specific subcategories of apparel and accessories. Relevant brands can count on using Amazon Live to showcase their merchandise to audiences wanting to go live during Prime Day.”
Competitors, such as Walmart and Target Corp. TGT,
Which tend to schedule their shopping events around Prime Day, will also get a bump from the Amazon event. Emarketer expects competing retailers to see sales increase 17.8% from last year, to $5.22 billion.
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Walmart hosted an event for Walmart+ members earlier this month.
Amazon stock is down 38.4% year-to-date.