NEW YORK (AP) — It’s summertime, and the bargains seem easy at a time when many consumer prices are high.
— It’s summertime, and the bargains seem easy at a time when many consumer prices are high.
July sales events have become a seasonal revenue driver for the retail industry since Amazon launched its first Prime Day back in 2015. While consumers may be enticed by the advertised can’t-miss savings on some products, personal finance experts say shoppers should be careful not to fall for potentially misleading marketing or give in to impulse buys.
Amazon has drummed up expectations in recent weeks for its 10th Prime Day event, which will be held on Tuesday and Wednesday and is open only to customers who pay $14.99 per month, or $139 per year, to receive free shipping and other perks as Prime members.
Rival retailers tried in the past to capture some of the Prime Day excitement by offering their own discounts during the two-day event. This year, Walmart, Target, Kohl’s, and newcomers TikTok Shop and Temu launched summer promotions ahead of Amazon, hoping to siphon off some of the e-commerce giant’s savings-hungry shoppers. Meanwhile, Macy’s will be rolling out what it calls its “best summer deals” during an eight-day discount event that begins on Tuesday.
July sales help retailers attract customers who are looking to get a head start on back-to-school shopping, which is the industry’s second-most important shopping season behind the winter holiday period. The markdowns also pull in some discretionary spending from shoppers who’ve had their eyes on gadgets, household products and seasonal items, such as a bikini or a new summer dress.
Discounts can help retailers combat “a summer lull in retail spending” as consumers shift their spending to summer vacations and services, like going out to eat at restaurants, according to John Mercer, the head of global research at Coresight Research.
“It drives a bit of excitement in that mid-year period», when retailers may otherwise struggle to generate more revenue, Mercer said. Companies also have relied on discounts to drive consumer spending during the recent period of inflation and high interest rates, he said.
Amazon doesn’t disclose how much revenue it pulls in from Prime Day, but it has given some indications of its success. The company said last year’s event resulted in the “single largest sales day» in the company’s history, with customers purchasing more than 375 million items.
