U.S. Markets closed

A Look At Traditional Retailer Promotions Amid Amazon Prime Day

Ezra Schwarzbaum

Following Amazon.com, Inc. (NASDAQ: AMZN)’s annual Prime Day, Deutsche Bank analyst Paul Trussell took a look at how traditional retailers responded in the face of sales as big or bigger than Black Friday.

Amazon reported that it sold three times as many Echo devices as on last year’s Prime Day and the stock on Wednesday was up more than 1 percent, pushing it above $1,000 per share for the first time since June 26.

Retailers' reactions were mixed but, excluding specialty retailers, Trussell noticed two trends: Large discount retainers barely reacted, and department stores saw a noticeable uptick in promotions.

So far this quarter, Trussell has seen more promotional activity across the board, but especially leading into July.

Reactionary Deals

American Eagle Outfitters (NYSE: AEO) offered 30 percent off online sales and free shipping, compared to the 24 percent off and limited free shipping offered last year.

DSW Inc. (NYSE: DSW) offered 30 percent off when ordering at least two shoes or bags. The company didn't run a promotion last year.

Express, Inc. (NYSE: EXPR) only offered free shipping last year, but upped its game with 40 percent off and double rewards points this year.

Gap Inc (NYSE: GPS) raised the percentage off online purchases from last year’s 35 percent to 40 percent. It also offered free shipping on all orders as opposed to only orders of at least $50.

J C Penney Company Inc (NYSE: JCP) launched an event titled “Cyber in July,” alluding to Cyber Monday, knows as the biggest day of deals online beyond Amazon. The event, which will run until Sunday, is offering “extreme deals” on thousands of items.

Kohl’s Corporation (NYSE: KSS) offered 30 percent off summer clothes and outdoor activity-related items.

Wal-Mart Stores Inc (NYSE: WMT) was less promotional than last year. Instead of repeating its “Dare to Compare” sale, offering top products at least as cheap as Amazon, it held a “Huge Summer Savings” event, offering other assorted sales.

Other brands, including Target Corporation (NYSE: TGT) and Nordstrom, Inc. (NYSE: JWN) didn't hold events to compete with Amazon.

Related Links:

How These 3 Retailers Are Outperforming The Sector

Retail Roundup: 9 Fresh M&A Rumors

Latest Ratings for AMZN

Date Firm Action From To
Apr 2017 Benchmark Reiterates Buy Buy
Apr 2017 Pacific Crest Downgrades Overweight Sector Weight
Apr 2017 Raymond James Downgrades Outperform Market Perform

View More Analyst Ratings for AMZN
View the Latest Analyst Ratings

See more from Benzinga

© 2017 Benzinga.com. Benzinga does not provide investment advice. All rights reserved.