Will Deal Days help Target clear its inventory?
Target is bringing back Deal Days, its answer to Amazon.com’s Prime Day, with big discounts and gift card rewards on product categories across its stores and target.com.
“We know guests look forward to Target Deal Days every year. With this year’s event being our biggest ever, guests can shop more incredible deals and items, with three full days to save on must-have products that will bring them joy all summer and beyond,” Christina Hennington, executive vice president and chief growth officer, Target, said in a statement. “From offering the most sought-after brands in retail and unparalleled savings to multiple, convenient fulfillment options within our nearly 2,000 stores, guests can shop Target with ease and confidence, knowing they are getting an incredible value.”
The promotion, running July 11-13, may be just what Target’s general ledger needs to kick off the third quarter. The retailer lowered its forecast for the second quarter and said it would mark down merchandise and cancel orders after it saw operating income fall to 5.3 percent in the first three months of the year, down from 9.8 percent in 2021. The chain ended the first quarter with inventory about 43 percent higher than the year before.
Target’s event will go head-to-head with Prime Day, which will run on July 12 and 13. Amazon has already begun offering pre-Prime Day deals to build sales momentum heading into the promotion. The stakes are higher this year for Amazon as well after the retail and technology giant posted a first-quarter loss, its first in seven years.
Other retailers, including Best Buy and Walmart, are expected to launch competing sales.
Walmart held its first Walmart+ members-only sale last month (June 2 – 5). The event, according to Numerator, yielded larger market baskets for the retailer with members spending an average of $69.75 per order, higher than the average walmart.com order ($64.99) and Prime Day in 2021 ($54.17).
Groceries played a much bigger role during Walmart+ Weekend with 59 percent of all orders containing groceries. Seven percent included health and beauty products and six percent household products.
Target is playing up groceries as part of Deal Days offering a $10 gift card on $50 purchases of food and beverages. It is also discounting beauty products 25 percent.
- Target Announces Biggest Target Deal Days with Savings on Hundreds of Thousands of Items Across All Categories – Target
- Target isn’t wasting any time in cutting the glut from its inventory – RetailWire
- Does Amazon need a great Prime Day now more than ever? – RetailWire
- Walmart+ Weekend Early Results Show Low Awareness, High Inflation Impact, Numerator Reports – Numerator/Globe Newswire
DISCUSSION QUESTIONS: How do you expect Target’s Deal Days, Amazon Prime Day and other July sales events by large retailers to stack up against their 2021 results? Will Target’s event enable it to achieve inventory equilibrium as it moves into the second half of the year?