Amazon Prime Day expected to set new record in U.S. online spending: Adobe
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Amazon Prime Day is expected to drive record online spending in the U.S. this week, according to a new report from Adobe Analytics published Monday morning.
Why it matters: Prime Day has become an industry-wide shopping phenomenon, and it will be even more crucial this year for retailers that are struggling to sell products that typically go on sale during this period.
- Target, for example, has had a hard time with appliances, apparel and home goods.
- Best Buy, similarly, has struggled with appliance sales as well as from electronics categories including home theater, gaming and phones.
Driving the news: The first leg of Prime Day on July 16 is projected to drive $7.1 billion of U.S. e-commerce spending, or 11.3% more than last year, Adobe Analytics predicts.
- The second day of the sale, on July 17, is expected to drive $6.9 billion, or a 9.2% increase from last year.
- The roughly $14 billion in combined sales predicted across both days would mark a 10.5% bump — and a new record.
The intrigue: Adobe's estimate is particularly noteworthy because major competitors like Walmart and Target held their own Prime Day-like sales earlier this month.
- Adobe attributes the anticipated strength of spending to steeper discounts across the spectrum of e-commerce providers it serves.
- For example, electronics discounts will reach about 22%, compared to a peak of 14% last year.
- Apparel sales are expected to reach 20% versus 12% last year, home furnishings at 17% versus 9%, and sporting goods to be cut by 11% versus 6%.
What we're watching: Prime Day is a few days later this year than last year, which Adobe expects will also drive more spending among back-to-school shoppers.
