In the United States, Black Friday has long been seen as the ultimate shopping event. However, Amazon’s Prime Day has been increasingly gaining momentum among consumers since its inception. Launched on June 15, 2015, as part of Amazon’s 20th-anniversary celebrations, it initially offered a 24-hour window of exclusive deals to Prime members.
Over the past decade, Prime Day has evolved from a one-day sales event to a multi-day shopping frenzy, significantly reshaping the US retail calendar. Melissa Minkow, Global Director of Retail Strategy at CI&T, observed that Prime Day has become an exceptional event where consumers feel inclined to splurge due to the impressive marketing around the event as a significant savings opportunity.
This year, Amazon extended its Prime Day sale to four days, from July 8th to 11th, making it the longest sale in the company’s history. It is estimated that in 2024, Amazon achieved record sales of $14.2 billion during the 48-hour event, increasing 11 per cent year-over-year. This year’s extended Prime Day event is projected to drive $23.8 billion in spending, a rise of 28.4 per cent compared to the previous year.
An Adobe spokesperson likened the event to “two Black Fridays,” which brought in $10.8 billion in online spending during the 2024 holiday shopping season. However, Amazon isn’t the only retailer capitalizing on this alternative “Black Friday” shopping season.
Prime Day has become a pivotal date in the retail calendar, according to Neil Saunders, MD of GlobalData. He noted that many consumers eagerly anticipate the event to secure deals and bargains.
To keep up with Amazon, other retailers such as Best Buy and Target have devised competing events like ‘Black Friday in July’ and ‘Target Circle Week.’ These events aim to attract consumers already excited by Amazon’s Prime Day.
Recent data revealed that during Prime Day, 53.4 per cent of consumers intended to explore retailers other than Amazon. Furthermore, a 2024 survey revealed that 35 per cent of Prime members also shopped during Target Circle Week, another 35 per cent participated in the Walmart Deals event, and 12 per cent took part in Best Buy’s ‘Black Friday in July.’
In response to Amazon’s Prime Day extension, competitors like Walmart and TikTok Shop have also extended their sales events. However, as noted by Daniel Reid, Senior Insights Analyst at Similarweb, merely extending the duration of discount periods isn’t enough to maintain competitiveness. Retailers must also provide a unique and credible value proposition that consumers cannot find elsewhere.
Many retailers, including Target, have adopted strategies such as releasing different deals each day to keep customers engaged and curious about what’s coming next. This year, retailers introduced new promotions to further attract consumers, such as Target allowing its Circle 360 members early access to Circle Week deals, TikTok Shop offering cash back to customers who watch ‘Deals For You Days’ live streams and find a lower price for a featured product elsewhere, and Walmart hosting its Deals event both in-person and online for the first time.
While it’s unlikely that these retailers will match the sales numbers achieved by Prime Day, it’s evident that they must continue innovating to capture consumers’ attention during this busy shopping period.
How long was Amazon’s Prime Day event this year?
Amazon extended its Prime Day event to four days, from July 8th to 11th, marking the longest sale in the company’s history.
What strategies are other retailers adopting to compete with Amazon’s Prime Day?
Retailers like Best Buy and Target are creating rival events, while others are extending their discount periods to match Amazon’s. Some are also releasing new deals daily to keep customers engaged and curious.
What new promotions are retailers offering this year to attract consumers?
Retailers are offering new promotions such as early access to deals for members, cashback offers, and hosting events both in-person and online.
