The reach of Amazon.com Inc.’s Prime Day has extended far beyond the retail giant’s ecosystem.
While Internet Retailer projects Amazon—No. 1 in the Internet Retailer 2019 Top 1000—will sell more than $6 billion worth of goods on Prime Day, Adobe Digital Insights forecasts that other retailers’ online sales are expected to jump 79% during the two-day sales event compared with last year’s 36-hour Prime Day sale. That would outpace last year, when retailers generated a 54% revenue lift.
Those gains are likely to stem from more large retailers directly taking on Prime Day by offering their own sales events that overlap with the 48-hour sale. For example, Macy’s Inc.’s “Black Friday in July” sale runs from July 8-14. Those sales, along with the widespread awareness of Prime Day, is driving a halo effect that is likely to provide a significant boost to merchants’ conversion rates. Last year, for example, large online merchants’ conversion rates rose 28% on Prime Day compared to the sales holiday the prior year, according to Adobe.
That growth was due in large part to consumers increasing their overall online shopping over the online sales event. Nearly 28% of U.S. online shoppers made a purchase on Prime Day last, according to an exclusive Internet Retailer and Toluna survey of 1,006 online consumers conducted July 18-19, 2018. And 37% of survey respondents shopped on other retailers’ websites on Prime Day 2018.
Plus, of the shoppers who browsed a non-Amazon website or app during Prime Day, 51% bought something. And 79% of those who purchased on a non-Amazon site did so because of a sale. Those consumers shopped at retailers including Walmart (56%), Target (49%), Macy’s (33%), Best Buy (37%), among others.
Challenging Prime Day worked for Target Corp. (No. 16 in the Top 1000) last year, when it launched a one-day sale on June 17 that helped drive its highest traffic and sales day in 2018. “Last year’s Target.com one-day sale was one of our biggest days of the year for online sales,” says Mark Tritton, executive vice president and chief merchandising officer at Target.
“Prime Day isn’t just an Amazon holiday anymore,” says Taylor Schreiner, principal analyst at Adobe Digital Insights. “Retailers have had a competitive response to the event over the past few years. In fact, research shows that more than 250 retailers are gearing up to convert Prime Day traffic this time around.”
Many retailers this year have launched their competing sales early, while others plan to compete directly on Prime Day(s):
- Macy’s Inc.: Macy’s “Black Friday in July” sale runs July 8-14, giving shoppers an extra 25% off. Plus, the department store retailer (No. 5) is offering Prime Day-favorite Instant Pot for $49.99—$50 off the regular price and $10 cheaper than Amazon’s price. Not to be outdone, Amazon.com added a $10-off coupon on its site.
- Nordstrom Inc.: Nordstrom’s Anniversary Sale runs July 19-August 2, with early access to Nordstrom cardholders on July 12. The sale promises the biggest markdowns of the year on brands such as Madewell, Steve Madden, Nike and Free People. Nordstrom is No. 18 in the Top 1000.
- Target Corp.: The retailer is offering “Target Deals Days” the same days as Prime Day, July 15-16, on which it will offer 50% off on some home goods, 40% off on some furniture, 30% off some small appliances and cookware (such as the Instant Pot), and other deals in other categories such as apparel, toys and more “on hundreds of thousands of items and new deals arriving each day,” Target says. It aims to duplicate the success it had last year.
- Walmart Inc.: The retail giant (No. 3) is having its competing Prime Day sale July 14-17, where it plans to offer discounts on home appliances, electronics, video games and more. It kicked off its sales early with “Google Week Savings” July 8-16, with up $50 off Google products, such as Google Home and Chromebook.
- Kohl’s Corp.: Kohl’s (No. 24) is offering an extra 25% off summer apparel leading up to Prime Day. The merchant also is offering $30 off the Nintendo Switch bundle, along with $105 in Kohl’s Cash, which shoppers can use from July 12-27.
- GameStop Corp.: The video games retailer (No. 46) is holding Game Days Summer Sale from July 7-20, where it will offer deep discounts on hardware, toys, games and more.
- EBay Inc.: EBay, No. 5 in the ranking of Internet Retailer Online Marketplaces, is holding a “crash” sale, which will include savings up to 50% on products like electronics and home items, fashion items and sporting goods, among others. “EBay is primed to deliver exactly what shoppers want during this year’s crash sale,” says Jay Hanson, vice president and chief operating officer, Americas. It is also launching “Hot deals for hot days,” July 8-22, when new deals will launch every day for products in categories such as technology, smart home devices and home appliances.
“With the creation of Amazon Prime Day, the aperture for deal hunting has certainly expanded beyond a single retailer,” says Justin Belgiano, senior vice president, consumer data practice at data measurement firm Nielsen. “That said, smaller online retailers will likely need to over-invest in order to capture sales, including offering compelling low prices, bundling, or matching fast shipping times. Those will be table stakes to compete during this year’s Prime Day. The field is getting crowded, and it will be interesting to see who ultimately will win the omnichannel [online and in-store] race.”
Fareeha Ali and April Berthene contributed to this report.
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