Walmart and Target take different approaches to Amazon's Prime Day – RetailWire - RetailWire

Jul 08, 2022

by George Anderson

Walmart will not be launching a special sales promotion next week to match Amazon.com’s Prime Day.

The retailer, CNBC reports, doesn’t see the need as it has been running clearance sales and rolling back prices on large numbers of items as it attempts to reduce overstocks and optimize its inventory levels.

“You go in stores now, it’s almost like Prime Day in some of these categories,” Rupesh Parikh, a senior analyst for Oppenheimer & Co., told CNBC.

The chain is currently promoting back-to-school deals, featuring discounted merchandise in apparel, electronics, furniture and supplies. The retailer said that consumers are shopping for back-to-school earlier this year with a focus on finding deals to stretch their budgets during inflationary times.

Walmart is also looking to make it easier for teachers to have what they need for their classrooms heading into the new school year. The retailer’s online classroom registry enables teachers to build and share a wish list of items that will help them create a more meaningful learning environment for their students.

Target, like Walmart, is also promoting special deals for students and teachers. Unlike its larger rival, however, it is also running a sales event that will vie for consumers’ attention at the same time as Prime Day.

The retailer said it is offering low prices on back-to-school goods and a one-time discount of 20 percent on any item for college students through its Target Circle rewards program. Target is also extending its Teacher Prep Event, which gives educators a 15 percent discount on supplies, for nearly six more weeks than last year. Teachers can take advantage of this offer between July 17 and September 10.

Target is bringing back its annual “Deal Days” sales promotion event with discounts on “thousands of items” across the store from July 11 to 13. The retailer, like Walmart, has been aggressively discounting merchandise to move out excess inventory that has cut into profits margins.

“We know guests look forward to Target Deal Days every year. With this year’s event being our biggest ever, guests can shop more incredible deals and items, with three full days to save on must-have products that will bring them joy all summer and beyond,” Christina Hennington, executive vice president and chief growth officer, Target, said in a statement.

DISCUSSION QUESTIONS: Do you think retailers should run head-to-head events with Prime Day as Target is doing or take a page from Walmart’s plan? Are July sales events more important or less so for retailers this year compared to years past?

Braintrust

"What I like about the Walmart and Target plans is that they fit each retailer’s particular needs without cutting the margins to fight a losing battle with Amazon."