Amazon confirmed Thursday that its annual Prime Day deals event will change early this year as the e-commerce giant wants to increase spending at times that are usually slower to the retail calendar.
The company has not confirmed the specific date. The original two-day shopping extravaganza took place in July, but Amazon said it will now be in the second quarter, referring to an event in June.
Amazon is likely in the second quarter for revenue of $ 110 billion to $ 116 billion, higher than Wall Street’s $ 108.6 billion forecast, because it includes the expected growth from Prime Day.
During a conference call, Chief Financial Officer Brian Olsavsky said Amazon intends to hold Prime Day early in 2020, but those plans have been hampered by the coronavirus outbreak. But the event was delayed until October, which resulted in the start of the holiday shopping season earlier than ever.
“There are a number of factors,”; Olsavsky said of the reason Amazon moved the incident. For that reason, the CFO claims that the Olympic Games will be held in July and are “Vacation months” for many families
“It might be better – for customers, vendors and vendors to experiment at different times,” he said. “We tried a different approach … in 2020, moving to October. But we believe it might be a better timing in the second quarter, that’s what we’re testing this year.
Over the years, Prime Day has prompted retailers such as Walmart, Target and Kohl’s to offer competitive promotions. And is likely to do so again.
Juozas Kaziukenas, Founder and CEO of Marketplace Pulse, talks about Prime Day.
“People are going to shop more … and maybe this would be a good time to do it earlier in June,” he said. People may be buying more travel-related clothing and items that they haven’t bought in a long time.
Over the years, Amazon has been using Prime Day to drive and promote fashion presentations as part of its growing business. This is perhaps the greatest opportunity to do so, as many Americans are born from the infestation cocoons and refresh their wardrobes.
The new period could spur an earlier start in back-to-school shopping for many parents. After the winter holidays, back to school is the second busiest retail opportunity.
With Prime Day moving into the second quarter, Amazon may also be looking to reduce the comparisons it faces as it went through last spring’s home stoppage when business boomed in 2020 second-quarter revenue. Amazon’s sales rose 40 percent to $ 88.91 billion, largely due to shoppers’ hoarding during the health crisis.
“They have a lot to overcome,” said Neil Sanders, managing director of GlobalData Retail. “All retailers will suffer from this, not adjustments. Rather, it is putting the trade where it needs to be processed to make the numbers look very positive. ”
Other retailers, such as Walmart and Target, also posted a second-quarter increase in sales as they were considered essential retailers and remained open last spring.Other stores had to close temporarily due to restrictions. Of COVID
Amazon did not disclose the number of sales increases on Prime Day last year. But said third-party sellers in the market earned more than $ 3.5 billion, a nearly 60 percent increase compared to 2019 and a record for retail and Mid-sized businesses that make up the middle market
“Prime Day is a fake holiday,” said Kaziukenas, “but I think there is enough excitement and marketing that what they put up for sale.”
– of CNBC Annie Palmer Contributed to this report.