As we approach the month of July, major retailers are gearing up for their highly anticipated sales events. Amazon.com Inc.’s Prime Day, Best Buy Co.’s Black Friday in July, Walmart Inc.’s Plus Week, and Target Corp.’s Circle Week are all on the horizon.
These sales events hold significant importance for the retail sector. Recent data from analytics company Placer.ai suggests that while inflation has impacted retail foot traffic in recent months, the upcoming sales events in July could potentially be a turning point for major retailers.
According to Ethan Chernofsky, senior vice president of marketing at Placer.ai, “Over the past several months, retail foot traffic has somewhat trailed behind previous years due to ongoing inflation, which continues to place strain on consumer budgets.” However, he also noted that holidays still have the power to drive spikes in foot traffic.
Chernofsky highlighted various holidays such as Valentine’s Day, Easter, Mother’s Day, Father’s Day, and even St. Patrick’s Day as occasions that have seen increases in retail visits, despite not being traditionally associated with discounts. However, Chernofsky observed that Memorial Day, which was the first major sales event of this year, experienced a relatively subdued increase in foot traffic.
In light of these findings, it will be interesting to see how the upcoming July sales events fare and whether they can rejuvenate retail foot traffic amidst the ongoing challenges posed by inflation.
The Changing Consumer Behavior in 2023
Recent data suggests that consumers in 2023 are adopting a more intentional approach to their spending habits. Instead of mindlessly browsing through the sales aisles for impulse buys, they are now showing a preference for visiting stores to purchase specific items and gifts for particular occasions. This shift in behavior indicates a more thoughtful and deliberate approach to shopping.
However, while this trend has been observed, there are signs that consumers may be growing tired of their shopping discipline. The gap between previous years’ retail foot traffic levels and visits in 2023 has started to narrow in the recent weeks. This could be an indication that consumers are preparing to hit the stores with renewed enthusiasm.
Retail Giants and Their Special Offers
Several major retailers are gearing up to entice shoppers with exciting deals and discounts. Amazon’s highly anticipated Prime Day is scheduled for July 11-12, followed by Best Buy’s Black Friday in July event from July 10-12. Walmart’s Plus Week will take place from July 10-13, while Target’s Circle Week will run from July 9-15. The timing of these events suggests that retailers are attempting to capitalize on consumer demand ahead of the critical Back to School season.
Prime Day Success
Last year’s Prime Day, according to Amazon, saw Prime members purchase over 300 million items worldwide. The event also witnessed increased participation from households, with buyers placing more orders and spending more on each order compared to previous years. Market-research company Numerator’s data reveals that the top five items during Prime Day were Amazon’s Fire Stick TV, Echo Dot 4th Generation, Echo Show 5, Orgain Organic Protein Powder, and the Kasa Smart Plug Mini.
As the retail landscape continues to evolve, it is clear that consumers are being more strategic in their shopping habits. With these insights into changing consumer behavior, retailers are positioning themselves to cater to the demand and maximize their sales during these promotional events.
Amazon’s Soaring Stocks and Best Buy’s Decline
A Year of Success for Amazon
Shares of Amazon have experienced an impressive surge, witnessing a staggering growth of 52% throughout the year. This remarkable performance reflects the company’s resilience and ability to adapt to market demands.
Best Buy’s Struggles
On the other hand, Best Buy’s stock has faced a slight downturn, experiencing a decline of 0.4%. Despite their efforts, Best Buy seems to be facing difficulties in maintaining their market position.
Walmart’s Solid Growth
Contrasting with Best Buy, Walmart has seen a steady increase in its shares, marking a growth rate of 11.2% in the year 2023. Walmart’s success can be attributed to its strong presence in the retail industry and effective business strategies.
Unfortunately, Target has encountered some setbacks this year, as its shares have witnessed a decline of 11%. Despite being an established player in the market, Target’s performance may indicate a need for reevaluation and strategic adjustments.
In summary, while Amazon continues to soar and Walmart secures steady growth, both Best Buy and Target face challenges that require careful attention and proactive measures to ensure future success.