A ‘Prime’ holiday shopping season
For years, Amazon Prime Day’s nickname was “Black Friday in July.”
Now, Amazon is helping to kick off the holiday shopping season in earnest after delaying its annual sale from July until October amid the coronavirus pandemic.
As they do when Prime Day is held in July, other retailers including Target, Walmart and Best Buy are holding big sales of their own to compete with Amazon’s members-only shopping event.
But after Prime Day and the competing sales end, be prepared for round after round of early sales.
Michael Brown, a partner in the consumer practice of Kearney, a global strategy and management consulting firm, said it’s critical for retailers to start the season early for many reasons, including store occupancy restrictions and shipping capacity shortage.
“Retailers that start early will capture consumer spending while those consumers have the funds and the ability to shop freely,” Kearney said. “They will also get a read on what consumers are shopping for compared to years past.”
According to a holiday survey from Affirm taken by 2,000 Americans, 7 in 10 respondents said they’re more likely to buy something on sale now, rather than waiting for the traditional Black Friday or Cyber Monday sales.
Competing Prime Day sales
Andy Mantis, head of data insights for 1010data, said with the potential for less discretionary spending this year, not getting “an early enough start could have an impact on how successful their holiday season will be.
“We’ll be watching the shifts in consumer spending that have emerged during COVID-19 as well as the performance of players like Target and Walmart who have gained share during COVID, sometimes at the expense of Amazon,” Mantis said.
Walmart, Target, Home Depot, Best Buy, Sam’s Club and Bed Bath & Beyond have announced they would start offering deals for the holiday season earlier than past years to reduce crowds and to spread out demand amid COVID-19.
Walmart started its “Big Save” sale Sunday, which continues through Thursday, and has promised an “allnew Black Friday experience” is coming. The retail giant said it will spread traditional Black Friday savings throughout the season,” with more deals available online.
For Best Buy’s two-day sale, Tuesday and Wednesday, it is offering a “Black Friday guarantee” on select, qualifying items purchased. “Because it’s 2020 and life is unpredictable, if the price on one of these deals goes lower before Black Friday, My Best Buy customers will be automatically reimbursed the difference,” the company said.
Early Black Friday?
Sara Skirboll, shopping and trends expert at RetailMeNot, said retailers are more likely to say they will offer their deepest discounts during Prime Day than Black Friday and Cyber Monday.
“As a result of fulfillment and shipping related issues many consumers experienced during the pandemic, they’re planning to start their holiday shopping earlier this year,” Skirboll said. “Prime Day, Cash Back Day and other early holiday sales give shoppers a great opportunity to find deals on the items they want without having to worry about whether it will arrive on time or sell out.”