Where Will You Shop This July: Target, Walmart or Amazon?
As we approach the midpoint of the year, the retail battleground is heating up with three major players, Target Corporation TGT, Walmart Inc. WMT and Amazon.com Inc. AMZN, all rolling out substantial sales events this July. Each of these retail giants is employing unique strategies to capture consumer attention and drive sales during this crucial shopping period. Let’s dive into the specifics of what each has to offer and analyze their potential impact on consumer spending and market share.
Target Circle Week
Target is poised to capture significant consumer interest with the return of its biggest sales event of the season, Target Circle Week. Running from Jul 7-13, this event offers savings of up to 50% on a wide range of items, strategically timed to align with summer and back-to-school shopping needs.
This annual event is a pivotal moment for Target Circle members, the company’s free-to-join loyalty program. During this week, members will benefit from substantial discounts, personalized bonuses and early access to essential items.
Target Circle members can now enjoy more convenience with the new Target Circle 360 subscription, offering unlimited access to same-day delivery via Shipt without delivery fees on orders more than $35. This subscription, available at an introductory price of $49 for the first year (regularly $99), is designed to increase convenience for customers and drive repeat business, potentially boosting Target’s revenue streams.
One of the standout features of Target Circle Week is the Deal of the Day, which includes exclusive daily deals for Target Circle members. For families preparing for the upcoming school year, Target Circle Week offers considerable savings on back-to-school items.
Target’s industry-leading fulfillment services, including Drive Up, Order Pickup and same-day delivery with Shipt, further enhance the shopping experience. These services not only add convenience but also solidify Target’s competitive edge in the retail sector.
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Walmart Deals
Walmart is not to be outdone, with its own massive savings event, "Walmart Deals," running from Jul 8-11. This event promises thousands of deals on popular items, including electronics, home goods, toys and travel essentials, with a special focus on back-to-school products.
Walmart+ members will have early access to shop the hottest deals starting at noon ET on Jul 8, five hours before the general public. The event covers a broad spectrum of categories, ensuring there is something for everyone. This extensive range is likely to attract a diverse shopper base.
Customers can shop online via Walmart.com and the Walmart app, making it convenient to take advantage of the deals. Walmart’s strategy leverages its vast product assortment and strong online presence, aiming to offer a seamless shopping experience that caters to both early birds and general shoppers.
Walmart’s expansive deal range and early access for members could drive significant sales volumes. The success of this event may further bolster Walmart’s e-commerce growth, an important metric, given the increasing shift toward online shopping.
Amazon Prime Day
Amazon’s Prime Day, now in its 10th year, remains a highly anticipated event, running from Jul 16-17. Prime members will have exclusive access to millions of deals across more than 35 categories, with new deals dropping as often as every five minutes during select periods. Only Prime members can access these deals, driving membership growth and retention. Deals span across electronics, kitchen, beauty, apparel and more, appealing to a wide audience.
Amazon’s approach combines exclusivity with a dynamic and engaging shopping experience, leveraging its Prime membership base to boost sales and customer loyalty. Frequent deal updates encourage shoppers to return multiple times, increasing the likelihood of impulse purchases and higher sales volumes.
Prime members can request access to exclusive deals expected to sell out quickly. Highlighted offers include up to 40% off Sony Wireless Headphones and up to 30% off Peloton products, adding a layer of exclusivity and urgency to the shopping experience.
Prime Day’s exclusivity and engaging deal structure could lead to substantial sales spikes and Prime membership growth. Amazon’s ability to sustain customer engagement and drive repeat purchases will be key indicators of its performance.
Wrapping Up
July’s retail landscape promises to be highly competitive, with Target, Walmart and Amazon each deploying strategic initiatives to capture consumer dollars. For investors, the success of these sales events will provide critical insights into each company's market positioning and growth trajectory.
Shares of Walmart, a Zacks Rank #2 (Buy) company, have advanced 30.9% in the past year compared with the S&P 500’s rise of 24.7%. In the same period, shares of Target and Amazon, each carrying a Zacks Rank #3 (Hold) company, have risen 10.8% and 44.2%, respectively. You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.
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