Amazon's (NASDAQ: AMZN) recent Prime Day, which ran June 21 through 22, was one of the most anticipated shopping events of the year. And in the U.S. alone, consumer spending surpassed $11 billion across two days of deals and bargains.
But Amazon isn't the only retailer that took in serious revenue during Prime Day. While the online giant saw U.S. sales of $8 billion to $8.5 billion, other retailers were able to benefit as well.
A huge impact
Amazon has long dominated e-commerce, but this year, its competitors refused to sit back and allow the online giant to hog consumers' attention. Instead, Target (NYSE: TGT) and Walmart (NYSE: WMT) launched their own specials to coincide with Prime Day, while a number of non-big-box retailers, like Kohl's (NYSE: KSS), opted to run specials concurrently as well.
All told, during Prime Day, revenue was up 29% at larger online retailers and 21% at smaller ones, according to Adobe Digital Insights. But investment banking giant Morgan Stanley says that brick-and-mortar stores benefitted from the sales event as well.
Furthermore, retailers that offered BOPIS -- buy online, pickup in store -- saw a 10% boost in sales compared to an average day in June, according to Adobe. And while more than half of Prime Day shoppers made their purchases on Amazon, 10% looked at warehouse club stores, 9% browsed department stores, and 8% turned to Best Buy (NYSE: BBY) for deals.
Good news for real estate investors
While Amazon may have enjoyed its share of revenue from Prime Day, the fact that physical retailers benefited as well is a positive thing. Retailers got battered in the course of the pandemic, and many well-known chains were forced to close stores in its wake.
Meanwhile, the pandemic changed shopping habits to a significant degree, and now, a lot of consumers are buying goods online rather than shopping in stores. The fear is that if that trend continues, more stores will permanently close down, leaving malls and shopping centers with daunting vacancy levels.
But clearly, even an event like Prime Day didn't deter some consumers from shopping in person. And the popularity of BOPIS means physical stores are likely to retain their staying power, even in an age when more and more people are doing their shopping online.
Mall REITs (real estate investment trusts) in particular have seen their value decline in the course of the pandemic, and several well-known names were forced into bankruptcy when the impact of the coronavirus crisis hit hard. And while 2021 is shaping up to be a better year for malls, the sector as a whole is still a ways off from a complete recovery.
That said, the fact that stores managed to benefit in some way from an online megasale should give real estate investors some peace of mind -- especially in an age when coronavirus vaccines are abundant, shoppers are tired of being cooped up at home, and the idea of walking into a store is no longer the terrifying prospect it may have been just one year ago.