PREVIEW

Last week, Amazon announced that it is designating July 15 as Prime Day, set merely 6 days before its potential strong competitor jet.com’s July 21 launch date. Amazon Prime Day will be a global shopping event exclusively for Amazon Prime members who will be able to shop new deals offered every 10 minutes. The announcement drew a strong response from Walmart and focused more attention on Target’s and Best Buy’s long-standing tradition of holiday-inspired summer sales.

Competitors’ Responses

BEST BUY OFFERS “BLACK FRIDAY AND CYBER MONDAY” SALE IN LATE JULY

Best Buy is advertising its own Black Friday in July event that will run at the end of this month. Its summer deals are perfect for occasions such as weddings, graduations, birthdays, housewarming parties and family reunions. Following the Black Friday, Best Buy is also hosting a Cyber Monday on July 27 for special online offers. On Best Buy’s website, the promotion claims that there’s “[n]o need to wait for after Thanksgiving sales to get Black Friday pricing….” This is not the first time Best Buy has held a Black Friday–inspired sales event. Last year, the same event occurred on July 25 and 26. Apple products, Samsung smartphones, Panasonic TVs, Jawbone fitness trackers and Canon cameras were included in the promotion. However, the prices offered were not close to real Black Friday prices, especially for ASUS laptops and Jawbone activity trackers, according to some tech editors.

TARGET’S “BLACK FRIDAY IN JULY” PROMOTES APPAREL AND ACCESSORIES BEFORE PRIME DAY

Target’s Black Friday in July sale is not all about stealing thunder from Amazon’s Prime Day. The company has run the sale every year since 2010. This year, the midsummer event offers buy one, get one 50% off on clothes, shoes, fragrances and other items on the Sunday and Monday before July 15 Last year, Target’s Black Friday in July sale was a three- weekend promotion: the first weekend focused on apparel and footwear, the second on home items, and the third on electronics and toys.

WALMART TO HOST A RIVAL ONLINE EXCLUSIVE SALE OF 2,000 ITEMS ON JULY 15

In response to Amazon’s Prime Day, Walmart just revealed a rival sale on over 2,000 items that will start the same day as Prime Day, July 15. The 2,000 rollbacks (Walmart’s term for discounts) will be offered online exclusively for 90 days, not for just “one day only” on July 15. In addition to announced deals in the electronics, home, baby and toy categories, Walmart promises some “atomic deals.” The company also lowered its minimum requirement for free shipping, from $50 to $35, which will apply until further notice. Walmart’s upcoming rollbacks are clearly targeting Amazon’s membership-only Prime Day promotion. In advertising its sale, Walmart emphasized that its low prices require no “admission fee” and are “available every day.” In a blog post on the Walmart.com website, Fernando Madeira, President and CEO of Walmart.com, said, “We’ve heard some retailers are charging $100 to get access to a sale. But the idea of asking customers to pay extra in order to save money just doesn’t add up for us. We’re kicking off some awesome deals this week that will be available for everybody with no hidden costs or admission fees, and they won’t be available for just one day.” Amazon immediately reacted to the criticism by accusing its competitors of charging higher prices for items in their physical stores than they do for the same items online. “The idea of charging your in-store customers more than your online customers doesn’t add up for us, but it’s a good reminder that you’re usually better off shopping online,” said Greg Greeley, Vice President of Amazon Prime.