Amazon’s Prime Day has caused a halo effect across the retail industry influencing discount strategies worldwide as it extends to its first two-day event sales.
NEW YORK, NY - July 24, 2019 - This year’s Amazon Prime Day sales broke all records and further creating a more competitive retail landscape. According to data from EDITED, a retail decision platform, more US retailers went head-to-head with the e-comm giant with deeper discounts than ever before.
Based on EDITED’s historical data, the average advertised discount percent taken on the first day of Prime was 36.8%, which then increased slightly to 38% on the second day of sale. Although this is a decrease from last year’s average discounts at 42.5%, twice as many retailers were reducing product for the first time to compete with Amazon deals.
Amazon’s decision to expand Prime Day to a two-day event boosted the number of discounted products in the marketplace by 30% in the past six weeks leading up to it. Customers responded well to these deeper markdowns as the products experiencing the majority of sellouts on the second day of sales were discounted for the first time at an average of 49%.
Target and Walmart emerged as key competitors with announcements ahead of Prime Day with their own deals. Over the two days, Walmart discounted the most product for the first time with the majority of these items reduced between 10-20% off. Whereas 62% of Target’s ‘Deal Days’ discounted products were reduced by 30-40% during the same period.
More retailers are also using bolder discount messaging to coincide with the event favoring offers of either 20% or 50%. Retailers such as Nike and Aldo shied away from the use of the word ‘Prime’ in their sales communications. Instead, they opted for wording like ‘2 Day Sale’ or ‘48 Hour Flash Sale’. Others like Calvin Klein and Macy’s repositioned the event as a summer sale using ‘Summer Black Friday’, ‘Black Friday in July’ and ‘Summer Sales’.
Accessories emerged as the most discounted category followed by tops, bottoms and dresses. The average discount taken for these categories on the second day of the sale was 33% for accessories, 29% for tops, 41% for bottoms and 42% for dresses.
According to Kayla Marci, Market Analyst at EDITED, “Prime Day has gained traction amongst British retailers who have increased their participation in American discounting events, such as Black Friday. Since 2016, the number of discounts taken in the six weeks leading up to Prime Day (including the event) has increased by 60% in the UK”.
Since 2009, EDITED’s software uses artificial intelligence, sophisticated analytics and image and text recognition to understand pricing, discounts, assortments and trends in real-time. EDITED is built and updated in-house by data scientists and engineers working alongside former buyers and merchandisers from global brands and retailers.
EDITED helps the world’s best retailers drive sales by eliminating guesswork. The Retail Decision Platform uses A.I. to optimize buying and merchandising decisions, ensuring retailers get their product and prices right every time. This is how the world’s most innovative retailers stay ahead of the competition; including PUMA, Tommy Hilfiger, Diesel, Ann Taylor and the Arcadia Group. For more information, visit www.edited.com.
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