Rivals thrive during Prime Day sales

Target and Walmart saw increased traffic during Amazon’s Prime Day event, according to data from Placer.ai. Target registered a 16.3% increase in visits on the first day of Prime Day, while Walmart posted a 4.7% rise. This increase in traffic is a notable indication of the effectiveness of the retailers’ promotional strategies, which were likely designed to counter Amazon’s Prime Day event.

The strong visitation trends among retailers offering Prime Week promotions suggest that consumers are looking for deals. R.J. Hottovy, head of analytical research at Placer.ai, noted that shoppers will visit stores and make purchases when presented with the right deals. This deal-driven mindset is a key factor in understanding consumer behavior, particularly in the current economic climate. The University of Michigan’s consumer sentiment index was 49.5 in June, the second-lowest reading on record, indicating that consumers are contending with macroeconomic uncertainty and higher gas prices.

Target lost some momentum during the rest of the Prime Day event but still posted encouraging year-to-date, day-of-week average increases of 8.8% on June 24, 7.8% on June 25 and 3.8% on June 26. Walmart’s traffic rose 3.4% on June 24, 3.5% on June 25 and 1.9% the last day of the Amazon Prime Day event, according to Placer.ai.

Overall visits increased 10.3% for Target versus last year’s Prime Week.

Preliminary data from Numerator shows that average household spending fell by 10% year over year during the Prime Day event, however, Amazon said it was pleased with the positive customer response to the event, with customers having access to millions of items at their lowest price of the year so far. Amazon noted that over 80% of deals were at their lowest price of the year and hundreds of thousands discounted by 40% or more.

Target and Walmart’s success during the Prime Day event suggests that they were able to effectively counter Amazon’s promotions. The ongoing competition between these retailers will likely drive innovation and strategic thinking, as they seek to adapt to the evolving needs and preferences of consumers.

Related: FAQs from Amazon

About the AuthorSenior editor at Supermarket NewsBill Wilson is the senior editor at Supermarket News, covering all things grocery and retail. He has been a journalist in the B2B industry for 25 years. He has received two Robert F. Boger awards for his work as a journalist in the infrastructure industry and has over 25 editorial awards total in his career. He graduated cum laude from Southern Illinois University at Carbondale with a major in broadcast communications.