Amazon’s Extended Prime Day: A Retail Gamechanger
In a strategic move, Amazon is making waves in the retail landscape by extending its Prime Day event from two days to an unprecedented four days, running from Tuesday, July 8, through Friday, July 11. This change coincides with rising consumer tariff concerns and aims to capitalize on the current economic climate. The event is set to kick off a week earlier than last year’s July 16 date, aligning perfectly with President Trump’s tariffs that come into effect on July 9. Moreover, Amazon is preparing the ground with a host of pre-Prime Day deals to attract consumers early.
Competing Retail Giants Join the Fray
Walmart is not taking a back seat in this retail showdown, launching Walmart Deals events beginning July 7 for Walmart+ members, which will open to all customers starting July 8 and running through July 13. Similarly, Target will host its Circle Week from July 6 to July 12, giving early access to Target Circle 360 members starting July 5. Unlike Amazon, which limits its Prime Day deals to online shoppers who pay a $139 annual fee, both Walmart and Target will offer the same discounts to both in-store and online shoppers, creating a more inclusive shopping environment.
Shifting Retail Trends in July
The concept of “Christmas in July” has long been a staple in retail marketing, aiming to boost sales during the slower summer months. However, since its inception on July 15, 2015, Amazon Prime Day has overshadowed these traditional sales events, prompting a ripple effect throughout the retail sector.
Economic Factors Fueling Consumer Spending
Despite the excitement surrounding Prime Day, there are growing concerns about consumer confidence. The Conference Board’s Consumer Confidence Index saw a decline of 5.4 points in June, following a brief uptick in May. With worries about tariffs affecting prices and availability lingers, retailers are optimistic that these summer promotions will trigger increased spending, particularly for back-to-school, college, and early holiday shopping.
Last year’s back-to-school spending fell by 5% to $39 billion, and college spending dropped by 7% to $87 billion according to the National Retail Federation (NRF). Although NRF has yet to release their projections for back-to-school spending in 2025, shoppers are continuously shifting towards early-season shopping to secure the best deals. By early July last year, around 55% of consumers had started their back-to-school and back-to-college shopping.
Revionics’ global pricing expert, Matt Pavich, highlights the cautious approach consumers are taking this back-to-school season. “With growing concerns about personal finances, consumers will be more budget-conscious than ever,” he stated. Promotions will therefore play a critical role in determining the success of retailers during this pivotal shopping season.
A New Amazon Initiative for Young Adults
Targeting a younger demographic, Amazon is launching a new Prime for Young Adults initiative aimed at consumers aged 18 to 24. While there are about 180.1 million Prime members in the U.S., the membership penetration among younger shoppers born after 1997 sits at just 5%. Amazon is offering a free six-month trial for young adults, which can be converted into a 50% discount on the regular Prime membership fee, bringing costs down to $7.49 per month or $69 per year. Additionally, young adult members can earn a 5% cash back bonus for a limited time.
This year also introduces a “Today’s Big Deals” feature that will highlight daily discounts, with new deals dropped as frequently as every five minutes during peak hours. Furthermore, Amazon Prime members will have access to fuel discounts with participating BP, Amoco, and ampm outlets, incentivizing spending with practical savings.
However, the extension of Prime Day to four days could create challenges for Amazon’s third-party sellers, who comprise over 60% of the retail sales on the platform. Many small- to mid-sized sellers are experiencing the effects of tariffs and may have to either reduce their participation or increase their prices. “Expect to see more of Amazon’s own products like Echo, Fire, Amazon Basics, and Amazon Essentials heavily featured during the event,” remarked Brett Rose, CEO of United National Consumer Supplies.
Walmart’s In-Store Deal Days
Walmart is also ramping up its July Deal Days by extending them from four to six days this year, commencing July 8. However, unlike Amazon’s earlier schedule, Walmart’s start date remains the same as last year. A key differentiator this year is Walmart’s decision to open Deal Days to in-store customers, a move that could significantly increase sales. With over 80% of its revenue generated in stores, this strategy positions Walmart to leverage foot traffic effectively.
Walmart is projecting strong performance in the upcoming quarter, expecting second-quarter revenues to be at the high end—or even surpass—its earlier growth guidance of 3.5% to 4.5%.
Target’s Competitive Strategy
Target’s Circle Week will take place similarly to last year, spanning five days and catering to both in-store and online consumers. Membership in Target’s free Target Circle loyalty program is required, but offerings are differentiated further with a paid Target Circle 360 membership that provides additional benefits for an annual fee of $99. This year, Target is heavily centering promos around back-to-school shopping, including exclusive discounts for college students and teachers.
Target aims to entice shoppers with essential supplies priced competitively, touting 20 “must-have” items for under $20 and over 1,000 supplies priced below $5. However, the company is looking to reverse its recent sales slump, as fiscal 2024 ended down nearly 1% and the first quarter of 2025 saw a 2.8% reduction in revenues. In contrast, both Walmart and Amazon are currently riding a wave of favorable momentum.
Projected Growth from July Sales Events
Last year, U.S. retailers experienced a significant uplift in sales amounting to $14.2 billion during Amazon’s Prime Day, with Amazon capturing approximately 60% of that spending while the remaining 40% was distributed among retailers like Walmart and Target. Given the extension of Amazon Prime Day to four days this year, there’s potential for even greater sales compared to the previous year.
Amazon Prime Day has become a vital boost to the retail industry overall. Core retail sales, excluding automobiles and food services, saw a healthy increment of 3.6% in 2024. However, only four months recorded over a 5% year-over-year increase, including July at 5.3%. As retail sales continue trending upward through the year, the July sales events are poised for strong performance despite existing concerns about tariffs and their implications on pricing.
Wall Street analysts are adopting a forward-looking approach to retail, according to Axios’ Madison Mills. “The market is proactive and has begun to factor in optimistic trade agreements,” she stated, referencing Treasury Secretary Scott Bessent’s economic agenda as a potential catalyst for renewed consumer spending and market confidence.
With a landscape influenced by consumer demand and promotional strategies, retailers are gearing up for what could be one of the most successful July sales events to date. As Amazon, Walmart, and Target prepare to capture market share, the stage is set for a vibrant retail season fueled by both opportunity and consumer anticipation.