Dive Brief:
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On Wednesday, two major retailers announced big summer sales: Amazon announced that Prime Day will take place July 11 and 12, while Target Circle Week will last from July 9 through 15.
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Both sales are exclusive to members of the retailers’ loyalty programs. Amazon’s Prime membership costs $139 annually, though non-members can opt for a free trial in order to shop the sale. Target’s Circle program is free.
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Target has a history of piggy-backing on Amazon’s Prime Day sales. For the first time, the mass merchant this year is linking its sale to its free Target Circle loyalty program, launched in 2019.
Dive Insight:
Amazon’s initial Prime Day in 2015 was a celebration of its 20th anniversary, but the e-commerce giant soon announced it would hold one every year. What Amazon may not have realized then is that most other retailers would too.
Target and Amazon on Wednesday both dropped name brands that will be tagged with price promotions. Amazon touted deals on Lancôme, Kérastase, Peloton and Victoria’s Secret, among others. Other items will be tagged with steep discounts, including 75% off one of its own Fire televisions. Target’s sale features discounts of 30% to 50% on many items and special deals on the Keurig K-Mini, a Lenovo laptop and Dyson Cordless Stick Vacuum.
It remains to be seen whether consumers are in the mood. In April, consumer confidence fell to the lowest point since July 2022, according to the Conference Board. Yet McKinsey & Company, also in April, found consumers cautious but willing to splurge. Retail sales patterns in recent months found that discretionary spending on goods has taken a hit as consumers prioritize dining out and other services.
Since last year’s sales, Amazon has also introduced an uncharacteristic pain point. The e-commerce giant now charges for some returns if a customer is close to a brick-and-mortar location that accepts Amazon returns.
Last year, Amazon held what is widely viewed as a second Prime Day in October, as did Target. An Amazon spokesperson declined to confirm reports that a similar fall event is already in the works.
