July sales events have become a seasonal revenue driver for the retail industry since
Rival retailers tried in the past to capture some of the Prime Day excitement by offering their own discounts during the two-day event. This year,
Why are retailers offering so many summer discounts?
July sales help retailers attract customers who are looking to get a head start on back-to-school shopping, which is the industry’s second-most important shopping season behind the winter holiday period. The markdowns also pull in some discretionary spending from shoppers who’ve had their eyes on gadgets, household products and seasonal items, such as a bikini or a new summer dress.
Discounts can help retailers combat “a summer lull in retail spending” as consumers shift their spending to summer vacations and services, like going out to eat at restaurants, according to
“It drives a bit of excitement in that mid-year period," when retailers may otherwise struggle to generate more revenue, Mercer said. Companies also have relied on discounts to drive consumer spending during the recent period of inflation and high interest rates, he said.
An estimate from market research firm
Are the prices on offer really deals or something else?
It depends on who you ask.
Retailers hype up their promotions to pull people in. But
But Prime Day discounts may matter less these days because customers are getting accustomed to the ultra-cheap products sold by
“Many of (the) deals may not be as competitive compared to Temu and Shein,” Kalyanam said.
At the same time, he noted rival retailers will most likely be looking at
Consumer data company Numerator reported that a majority of the roughly 5,000 Prime Day shoppers it surveyed after last year's event saw product discounts of up to 40%. Survey respondents said they saw a quarter of items selling at a discount of 60% or more.
Some shopping experts have said that some past Prime discounts were not as big as they appeared.
What are some bargain-hunting and budgeting tips?
If you're watching your budget, personal finance experts say you should exercise caution before you buy.
“Avoid the false sense of urgency of manufactured holidays,” advises
“Once you have a list, it’s less likely you’ll get distracted by things you don’t need," Egan said. "If that list contains almost nothing, I would say to delete the (retailers') apps off your phone for the next week or two. Or you’re going to get lots of notifications.”
Any shopper already carrying a credit card balance should keep in mind that the interest paid on that balance could end up cancelling out any perceived savings from a summer sale purchase, he added.
“A deal is not a deal if you have to pay interest on it," Egan said.
While it may make sense for shoppers to try out free or temporary memberships to qualify for the best deals during the summer sales, those programs typically charge a fee to the customer’s credit card on file after a short period of time, noted
“Set a calendar reminder to cancel if you don't want to go through with that subscription,” Witte said. “Think about it right at the beginning. And remember that these companies design this product to make it easy to sign up, but more difficult to cancel."
Consumer Reports also offers a few tips: Download
Don't forget to shop around
Filling up an online
Unlike Prime Day offers, Walmart’s discount event this month was open to everyone. However, the company sweetened the deal for its Walmart+ members by offering them early access.
Target only offered discounts to shoppers enrolled in its
TikTok Shop, the e-commerce arm of the popular video-sharing app, opened its summer sales event to everyone. The event started on
_______
The Associated Press receives support from
'
Copyright 2024 The Associated Press. All rights reserved. This material may not be published, broadcast, rewritten or redistributed without permission.
, source