Image Source: Target
Will Target and Walmart Outdo Amazon on Prime Day?
Target and Walmart want to use their store networks and omnichannel capabilities to outdo Amazon.com in the same week it holds its two-day Prime Day sales event.
The two retailers yesterday announced competing July sales events with big discounts on popular products.
Target Circle Week will run July 9 through 15 with up to 50 percent savings across the retailer’s popular private label lines and national brands. The special savings are exclusive to Target Circle members, the retailer’s free loyalty program, who can shop in its stores, online and through its app. Circle members can get digital orders through the chain’s popular free same-day Order Pickup and Drive Up services or same-day delivery through Target’s Shipt service.
The retailer is looking to make it easy for all its guests (Target for customers) to get in on the deals. Non-members can quickly join the Circle program for free at www.target.com/circle.
Circle members receive one percent earnings rewards on non-RedCard purchases to use on future shopping trips and get five percent off during their birthday month. Those members paying with the retailer’s RedCard get five percent off purchases. Members also receive votes that they can use to direct the retailer’s charitable giving.
“Target Circle Week is our way of saying ‘thank you’ to our guests,” Cara Sylvester, executive vice president and chief guest experience officer, Target, said in a statement. “Guests have saved millions of dollars during previous Target Circle Weeks, and this summer they’ll have yet another opportunity to celebrate that only-at-Target feeling of affordable joy as they stock up on essentials, discover new favorites and shop online, in-store or with our industry-leading same-day services.”
The Walmart+ Week promotion will kick off at midnight ET on July 10 and run through July 13. Subscribers who pay $98 a year will “get first dibs on summer’s hottest must-have items on Walmart.com, including exclusive deals and limited-time offers” before the gates swing open for all of Walmart’s customers on July 11, according to an email sent to media outlets. The sale will conclude at 7 PM ET on July 13.
Walmart+ members will get access to exclusive limited-time deals through the retailer, including:
- Buy one, get one tickets to all Six Flags parks;
- Six months of Panera Bread’s unlimited SipClub for $5 a month plus tax and a monthly $5 MyPanera reward;
- A $30 credit towards pet-sitting and dog-walking services at Rover;
- Thirty percent off SpaFinder gift certificates.
Amazon charges $139 a year for membership in its Prime program. Prime Day will run on July 11 and 12.
Discussion Questions
DISCUSSION QUESTIONS: Do you see opportunities for Target and Walmart to gain ground on Amazon during their sales events in July? Will the results of these sales offer insights into the willingness of consumers to make discretionary purchases over the second half of the year?
Poll
Loading …BrainTrust
Dave Bruno
Director, Retail Market Insights, Aptos
Mark Ryski
Founder, CEO & Author, HeadCount Corporation
Walmart and Target are playing offense on Prime Day, and consumers will be the winners. Notwithstanding the inflationary headwinds that are impacting discretionary sales, big sales events by these majors, in response to Prime Day will be a good test of consumer sentiment and a bellwether for things to come.
This will be interesting to see this year. Inflation and discretionary monies will definitely play a big part of its success.
I feel like I say the same thing every year. July sales are meant to drive traffic at times when consumers would just otherwise be at the beach or movies.
It’s generally a chance to improve an otherwise anemic top line. There’s not a ton of fresh product around.
So now the battle is being fought online. They all have the same thing to gain. Top line. In that regard, Walmart and Target might have an edge….depending on the weather
Let the customer acquisition races begin. Target and Walmart have to play in this game. Anything spent with Amazon during Prime Day is a share of wallet that will never come back, as shoppers tend to “spend it forward” and use up future purchasing power those days. As well train a customer to shop with you once and you get some lifetime value increment. All the add on’s and deals to attract and keep consumers loyal through value add to a subscription program matter. It doesn’t take much for a shopper to “click away” from any given retailer on any single purchase. The annual subscription/loyalty membership is one of the only tools left to keep that customer loyal.
It is now a well established tradition for many retailers to jump on the discount and deal bandwagon during Prime Day. And that makes sense because there is no reason to give Amazon all of the limelight and allow them to steal share. As for the effectiveness of the various campaigns, I see Target as having the edge over Walmart – because its general merchandise selection is superior, because Circle (unlike Walmart+) is free to join, and because its customers have somewhat more robust disposable income levels. However, Target and Walmart won’t be the only retailers participating.
The July programs have become a bigger contributor to back-to-school and college revenues in recent years. I wonder if this year’s deals from Amazon, Target and Walmart, and Best Buy’s Black Friday in July promotion, will be enough to get parents shopping early for the next school year?
This is a great point. And to that point will Target and Walmart wratchet down their BTS promos this year to push the Christmas in July theme? This will be interesting to see with consumers holding on their monies because of current inflation issues.
BTS planograms are typically all set up by the 4th of July – some Texas schools return in late July! So anything done to get shoppers in the door will automatically trigger awareness and purchase of school gear. This is a BTS event at its heart, even if none of the main players call it that.
Beaches, barbeques, and now, bargains: America’s biggest retailers have created a new summer tradition. And given the persistence of inflation and other economic pressure, I am all for it. I suspect Target and Walmart will have an opportunity to gain ground – their brick-and-mortar presence alone gives them some advantage over Amazon, and I am particularly interested in how Target’s focus on their ever-popular private label brands will perform.
Clever line, but you can’t fool me. I know you know July sales have been around forever. It’s the only way we were able to get people away from those beaches and barbeques.Now they can be on the beach or having a barbeque and still shop. Funny.
Ok, totally fair point re:July sales not being new. But now we have the added benefit (?) of all the PR, Paula! It’s a “thing” now!!!
What used to be offensive customer acquisition is now defensive customer retention. And within this very healthy bout of fisticuffs the customer is offered a pretty amazing array of deals and discounts. I fully expect lots of other retailers to participate, even if it’s in a lower key manner. It’s kind of like Black Friday. How does a retailer not participate if it wants to maintain some semblance of market share?
Since this promotion period is directed at Prime, Walmart+ and Circle members, Walmart and Target are starting far behind. Prime membership is pushing 200 million. Walmart, after a big push is at 59 million. Target is about 80 million. With more loyalty members than Walmart and Target combined, Amazon will be difficult to catch.
That being said, Walmart and Target benefit from this promotional period. It will put shoppers in the buying mindset. Shoppers will first go to their favorite retailer to respond to promoted deals.
Again, Amazon will have the edge as the “Prime Days” have become almost as ubiquitous as Black Friday.
The results will be good. Retailers will be happy with a plus 3% or so. The more significant indicator is the overall economy, with outstanding job growth, higher wages, and less inflation. If those don’t deliver, the problem may be more extensive and indicate a change in shopper mindset.
Concurrent sales events will help Target, Walmart and Amazon gain loyalty and refine their processes ahead of the holiday season. All three retailers seek to grow their memberships.
Sales results will reveal which products remain competitive despite consumers’ price-conscious habits and desire for travel and entertainment.
I’m always puzzled by these comparisons: Wal*Mart and Amazon are roughly the same size (“roughly” being the key word here, since for the latter one may in/exclude non-retail operations) Target is about 15-20% the size of either of its two siblings (at least in terms of revenue; in terms of the ability to attract publicity the gap is much less). A more relevant question might be: if Target gains ground on either – or both – will they even notice ??