Amazon Prime Day is upon us. What launched in 2015 as a 24-hour discount extravaganza has expanded to a two-day event. As a matter of fact, Amazon is planning a second "Prime Day" in the fall.
Amazon isn't the only retail giant that's ready to throw consumers discounts...Target has decided to run a three-day "Deals Day" event, both Best Buy and Macy's are set to host their "Black Friday in July" sale and Walmart is marking prices down.
While finding deals may be something to celebrate, there may be more meaning behind the big discounts.... Built up inventory.
With inflation running red-hot, retailers have already warned of excess demand. According to CNBC, "retailers have chalked up the problem to a mix of factors, including ordering too much, getting seasonal goods too late, pandemic categories losing luster and consumers spending more on services instead of stuff."
Last month, the May read on retail sales (a quick gauge on consumer spending), fell 0.3%. On Friday, June's read is due, just days after the latest report on inflation.
It will be interesting to evaluate the numbers, paired with a strong consumer balance sheet in the face of red hot inflation.
So, with Prime Day upon us, there are things to ponder… Is this simply the bellwether of many more "discount extravaganzas" to come for many more retailers? If that's the case, what do the increased number of rolled back prices really mean about inflation?
What's your take? Hit me up via email (firstname.lastname@example.org) and we can discuss.