Target is primed for Prime Day
Target is appealing to Amazon Prime Day shoppers by offering access to special deals that do not require a membership fee.
The retailer will host an online summer sale on July 17 -- set to coincide with Prime Day, which is on July 16 and will last for 36 hours. In a tweet, Target offered a pointed jab at the Amazon event, which is only open to Prime members, in writing "Epic deals without a membership? Yes, please!"
The retailer will offer two-day shipping on orders over $35, as well as free shipping and 5 percent off orders for those with Target REDCard. Those who spend over $100 can also receive a free six-month membership for same-day delivery from Shipt. Among other deals, the sale will include: 25 percent off beauty and personal care items, 30 percent off Target-exclusive homeware brands, $5 off on books when you spend $20, and up to 30 percent off select baby items. Making the sale in more direct competition with Amazon, it will be for just Target.com, not Target stores.
Target joins Walmart, Macy's and other retailers offering Black Friday in July sales to compete with Amazon's Prime Day.
"Other retailers are increasingly jumping on the Amazon Prime Day bandwagon with competing sales of their own. Large and niche retailers will see substantial spikes in online sales during Prime Day due to increased conversion rates. In 2017, large retailers saw a 35% increase in sales on Prime Day, and we anticipate new records this year. Prime Day approaches on the heels of record online sales growth for the second quarter. We expect strong online sales to continue throughout the year with a record back to school season surpassing $50B in online sales for the first time, driving over 16.1% year-over-year growth in Q3 2018 and a substantial increase in online shopping YoY for the holidays,” said Taylor Schreiner, Director, Adobe Digital Insights.
Amazon's Prime Day, arguably the third biggest shopping day of the year after Black Friday and Cyber Monday, will offer 36 hours of deals that for the first time will push into food and consumables.
New this year will be heavy promotions and deep discounts at Whole Foods Market, which Amazon acquired last year in June.
“Prime Day is the perfect setting for Amazon to drive more trial and adoption of Whole Foods among their loyal Prime base,” Ryne Misso, director of marketing at Market Track, told The Wall Street Journal. “Amazon has already rolled out extremely competitive promotions at Whole Foods—like half-off baby back ribs last week—to drive new shoppers through the door. Add 10% off eligible items with your Prime membership, and Amazon has already removed some of the cost barriers that have kept shoppers away from Whole Foods in the past.”
The Whole Foods Market promotion for Prime Day includes a 10% discount for Prime members.
In addition to offering incentives for consumers, Amazon is introducing what they are calling “the best Prime Day celebration yet.” To enhance the excitement for Prime Day, Amazon announced that they will be shipping “giant Smile boxes” to select cities -- Brooklyn, Los Angeles, Milan, Tokyo and London this year, which hold “exciting events,” like a concert, inside. Customers can even watch the events unfold by simply clicking at amazon.com/unboxingprimeday.
“Prime members will enjoy a day (and a half) of our best deals, with 36 hours to shop more than one million deals worldwide,” said Jeff Wilke, Amazon CEO Worldwide Consumer. “New this year, members can shop exclusive Prime Day Launches from hundreds of brands worldwide, enjoy exclusive savings at Whole Foods Market and experience surprise entertainment events unboxed from giant Smile boxes in major cities. More than 100 million paid Prime members around the world will find our best Prime Day celebration yet.”
Last years’ Prime Day is said to have generated Amazon an estimated $1 billion in sales, according to an analysis by Cowen & Co. and JPMorgan Chase. In addition, Amazon said it added "tens of millions" of Prime members to the platform overnight, which is yet another reason why the event has become so successful for the company.
Amazon recently revealed that it has more than 100 million paid Prime members globally.
Target operates 1,829 stores and Target.com.