Prime Day Frenzy: How Retail Giants Are Starting Back-to-School Promotions Early to Outpace Amazon
By Arriana McLymore and Siddharth Cavale
NEW YORK (Multibagger) – While children may wish for an endless summer, major retailers like Walmart, Target, and Shein are racing to kick off the back-to-school season earlier than ever in a bid to outmaneuver Amazon’s Prime Day.
In a strategic move to capture early parental spending, these retail giants are launching promotions on sneakers, computers, kids' clothing, and backpacks well ahead of Amazon's Prime Day, scheduled for July 16 and 17.
Retail Giants Gear Up for Early Promotions
Despite schools not resuming until late August or September in many communities, this week and next are seeing a surge in back-to-school campaigns, starting on average two days earlier than in previous years. This early bird strategy aims to secure a larger market share, as stated by Brian Jacobsen, Chief Economist at Annex Wealth Management. "It's not good enough to have bigger discounts. You need them earlier than your rivals," he said.
Target, Walmart, and Shein Lead the Charge
Target has kicked off a week-long event, offering 30% off on school uniforms and backpacks, including items from its in-house brand, Cat & Jack. This campaign launched two days earlier than last year. Walmart is not far behind, initiating its “largest deals event ever” from Tuesday to Thursday, also two days earlier than last year. Shein, known for its budget-friendly fashion, is hosting a seven-week back-to-school sale starting July 15, strategically placed a day ahead of Amazon Prime Day.
Even Bytedance's TikTok Shop is getting in on the action, running a deals event from Tuesday to July 17.
Consumer Spending on the Rise
Brian McCarthy, a retail strategy consultant at Deloitte Consulting, noted that last year, more families planned to spend the majority of their back-to-school budgets by the end of July. For instance, Jewelia Stanley, a 32-year-old mother from Tampa, Florida, expects to spend $1,200—at least $300 more than last year—on back-to-school items for her three children. Her shopping list includes clothes from Shein and Pinduoduo’s Temu, uniforms from Walmart, and supplies from Amazon. The most expensive items on her list are shoes from brands like Nike or New Balance, which can cost between $99 and $250 a pair.
Record-Breaking Back-to-School Spending
Last year's back-to-school spending reached an estimated $41.5 billion for children in kindergarten to 12th grade, and the figure ballooned to $135.5 billion when including college students, according to the National Retail Federation.
Prime Day: A Retail Game Changer
Amazon's Prime Day has redefined a traditionally slow retail season since its inception a decade ago. The two-day extravaganza not only boosts sales for Amazon but also forces competitors to follow suit. Last year, Amazon experienced its biggest single day of sales in company history on the first day of Prime Day, with U.S. online sales across retailers during the event reaching $12.7 billion. Prime Day contributes an estimated 1% to 2% of Amazon's full-year net sales, which stood at $574.8 billion in 2023.
Early Promotions: A Growing Trend
The trend of early promotions isn't confined to back-to-school shopping. Last year, Walmart and Amazon both launched year-end promotions in October, well ahead of Black Friday and Christmas.
Consumer Insight
Amazon's Prime Day is a magnet for deal hunters, attracting shoppers looking for savings on a wide array of items, from notebooks to lunch boxes. “Our members are looking for savings,” said Jamil Ghani, Worldwide Vice President of Amazon Prime. “The economic situation of the last five years has been tough, and everybody is looking to stretch their dollars further.”
Breaking It Down: What This Means for You
- Early Bird Gets the Deal: Retailers are starting their back-to-school promotions earlier than ever to win your dollars before you spend them elsewhere. This means you can snag great deals now rather than waiting until the last minute.
- Competitive Discounts: Expect significant discounts from not just Amazon but also Walmart, Target, Shein, and even TikTok Shop. Shop around to find the best deals on essential items.
- Budgeting for Back-to-School: With earlier promotions, you might find it easier to spread out your spending over a longer period, reducing the financial strain as school approaches.
- Record Spending: Be aware that back-to-school spending is on the rise. Plan your budget carefully to ensure you don't overspend.
- Prime Day Impact: While Amazon's Prime Day offers significant deals, the competition has forced other retailers to offer comparable discounts. Keep an eye on various sales events to maximize your savings.
In summary, the retail landscape is more competitive than ever, with major players vying for your attention and dollars earlier each year. Stay informed, shop smart, and make the most of these early deals to get the best value for your back-to-school shopping.