When we think of large-scale shopping events, our minds tend to land on Black Friday, Cyber Monday, and Amazon Prime Day. This year, Amazon's (NASDAQ: AMZN) mega sales event will kick off on Monday, June 21, and last through Tuesday, June 22. And consumers can expect bargains on thousands of products.
Of course, there's no better time than the present to run an online shopping event. In the course of the pandemic, many consumers have shifted to digital purchases after safety concerns kept them out of malls and away from stores. In fact, last year, Prime Day helped Amazon take in $10.4 billion on a global basis, and this year's event could be just as huge.
But big-box retailers aren't about to just sit back and let Amazon enjoy all of its Prime Day success without throwing a wrench into the works. Both Target (NYSE: TGT) and Walmart (NYSE: WMT) have their own sales events in store, and they could take a lot of business away from Amazon.
Sharing consumers' attention
Amazon has been taking business away from physical retailers for years -- a fact that's a solid point of concern for real estate investors. Malls and shopping centers have been losing tenants as retail chains and local businesses alike have seen Amazon take away a chunk of their customers -- and revenue. But if Target and Walmart are able to put up a strong enough fight later this month, it might limit Amazon's revenue intake -- and halt the online giant in its tracks.
Target is planning its own digital sales event called Target Deal Days, and it will run concurrently with Prime Day, wrapping up on June 22. Target will also feature same-day order fulfillment -- an option Amazon generally can't offer due to not having storefronts where customers can come in and pick up their goods. Walmart, meanwhile, is running its own event called Deals for Days, and it will feature both online and in-store specials.
One advantage both Target and Walmart have this month is that their sales events are open to everyone and aren't membership-based. Prime Day, by contrast, is available to Amazon Prime customers only, though it's generally possible to sign up for a limited free trial to participate in the event.
Stimulus checks could fuel U.S. spending
In March, a third stimulus round worth $1,400 was approved as part of the American Rescue Plan. And some shoppers may seek to dip into their stimulus funds to take advantage of the numerous deals apt to become available in late June. Furthermore, U.S. consumers may spend more freely this month on the heels of news of a dropping unemployment rate, which May's recent jobs report reflected.
Amazon is an unquestionable powerhouse, and there's no reason to suspect it won't do extremely well this Prime Day. But if Target and Walmart manage to take a fair amount of business away from Amazon, it'll further solidify their spot as major shopping center anchors and reinforce the notion that physical stores offer value that online merchants simply can't mimic.