June 22, 2022
Target is bringing back Deal Days, its answer to Amazon.com’s Prime Day, with deep discounts and gift card rewards across product categories in its stores and at target.com.
“We know customers look forward to Target Deal Days every year. With this year’s event being our biggest event, guests can shop for more amazing deals and items, with three full days to save on must-have products that will bring them joy all summer long and beyond,” Christina Hennington, executive vice president and chief growth officer, Target, said in a statement. “From offering the most sought-after brands in retail and unmatched savings, to multiple convenient fulfillment options in our nearly 2,000 stores, customers can shop Target with ease and confidence, knowing they’re getting a incredible value.”
The promotion, which will run July 11-13, could be just what Target’s general ledger needs to kick off Q3. The retailer lowered its forecast for the second quarter and said it would cut back on merchandise and cancel orders after seeing its operating profit tumble to 5.3% in the first three months of the year, compared to 9.8% in 2021. The chain ended the first trimester with an inventory approximately 43% higher than the previous year.
Target’s event will go hand-in-hand with Prime Day, which runs July 12-13. Amazon has already started offering pre-Prime Day deals to build sales momentum ahead of the promotion. The the stakes are higher this year for Amazon as well after the retail and tech giant posted a first-quarter loss, its first in seven years.
Other retailers, including Best Buy and Walmart, are expected to launch competing sales.
Walmart held its first Walmart+ members-only sale last month (June 2-5). The event, according to Numeratorgenerated larger market baskets for the retailer, with members spending an average of $69.75 per order, which is higher than the average order for walmart.com ($64.99) and Prime Day in 2021 (54. $17).
Groceries played a much bigger role during the Walmart+ weekend with 59% of all orders containing groceries. Seven percent included health and beauty products and six percent household products.
Target is playing groceries as part of Deal Days offering a $10 gift card on $50 food and beverage purchases. It also offers a 25% discount on beauty products.
DISCUSSION QUESTIONS: How do you expect Target’s Deal Days, Amazon Prime Day and other July sales events hosted by major retailers to compare to their 2021 results? Will Target’s event allow it to break even as it enters the second half of the year?
“With ever-rising gas prices and daily inflation news, America is ready for deals! Prime Day, Deal Days and more are coming at just the right time.”