Retail rivals crash Amazon’s Prime Day party
NE WY O R K » The gravitational pull of Amazon Prime Day is so strong on shoppers that it’s benefiting other retailers as well, according to an early analysis from a key data group.
On Monday — the first day of Amazon’s 48-hour sales event — large retailers, those that generated annual revenue of at least $1 billion, enjoyed a 64 percent increase in online sales compared with an average Monday, according to Adobe Analytics, which measures 80 of the top 100 retailers on the web in the U.S. That is compared with last year’s 54 percent. In addition, niche retailers, those with annual revenue of less than $5 million, had a 30 percent increase in web sales.
Amazon’s fifth annual Prime Day — which this year began Monday afternoon — was created to drum up sales during sluggish summer months and sign up more users for the company’s membership program.
Other retailers have introduced sales to compete against Prime Day. Walmart has a “summer savings event” through Wednesday. Best Buy, eBay, Target and other retailers also are offering discounts.
Amazon, the Seattle e-commerce behemoth, said it was offering more than 1 million deals. Amazon’s own products, such as its Fire tablets and Echo smart speakers, usually are among the strongest sellers.
The events also have helped to encourage shoppers to make back-to-school shopping purchases before that season arrives.
This year, some used the high-profile event as a way to garner attention for their protests against Amazon.
At a warehouse in Shakopee, Minn., Amazon workers staged a protest Monday to raise awareness of what they say are unfair working conditions. A group of tech workers in Seattle, called Amazon Employees for Climate Justice, is supporting the strike. Amazon said Monday night that roughly 15 workers participated in the event outside the Shakopee fulfillment center.
On Twitter, Democratic presidential candidate Elizabeth Warren, a U.S. senator from Massachusetts, voiced her support for the workers.
Amazon said it already offers what the workers are asking for.
“We provide great employment opportunities with excellent pay — ranging from $16.25 to $20.80 per hour, and comprehensive benefits including health care, up to 20 weeks parental leave, paid education, promotional opportunities and more,” Amazon spokeswoman Brenda Alfred said.
The company has faced labor unrest before in Shakopee and in Europe.
In New York, a coalition of labor groups planned to deliver 250,000 petitions to Amazon founder Jeff Bezos’ Manhattan home, calling on the company to cut business ties with ICE and end abusive working conditions in its warehouses. And some on Twitter called for a blanket boycott of Amazon during Prime Day.
San Diego State University marketing professor Steven Osinski said the protests were unlikely to have an effect on sales, however.
“Americans liking discounts will trump worrying about higher wages for two days,” he said.
Amazon counts more than 100 million subscribers to its Prime loyalty program, which costs $119 per year and provides free two-day shipping, free streaming movies, TV shows, music and other perks.