Shares of Macy's M and Dick's Sporting Goods DKS both took a hit on Monday, while online retail powerhouse Amazon AMZN closed nearly 2% higher ahead of Prime Day, its much-hyped online shopping extravaganza exclusively for Amazon Prime customers.
Amazon Prime Day is actually 30-hours worth of deals on thousands of items. The deals are offered only for Amazon’s paid Prime members, which now total more than an estimated 80 million. Prime day begins at 9 p.m. ET tonight (also read: Amazon Prime Day: An Illustrated Guide for Investors).
Shares of Macy's dove 7.05% to close at $21.08 per share, which is just above its 52-week low. Macy’s was also down 1.09% in after-hours trading, just hours before Amazon, the online giant that is contributing to its declines, gets yet another day in the sun.
Macy’s is currently a Zacks Rank #3 (Hold), but investors seem to continue to question if the once-powerful department store will be able to turn around its nearly two-year decline. The company’s stock traded 21.6 million shares on Monday, which is far above its roughly 8.5 million average volume.
Dick's saw its stock price tank 7.17% today, closing marginally above its 52-week low. The company is currently as Zacks Rank #3 (Hold), but it was able to score an A for Value in our Style Scores system.
Interestingly enough, Amazon’s big summer sale does not even boast its best prices on many Prime Day items, according to a recent report from TechCrunch. Still, Amazon’s size and reach have seemingly forced the now-faltering retail companies to join in on this temporary summer bargain hunting.
Macy’s tried to help fight against Amazon’s price-slashing sale by offering 25% to 60% off on summer-related items from July 10 through 11. Nevertheless, its stock price only suffered on its first day of sales.
Macy’s most recent two-day sale comes after it began to offer price cuts in the rarely-discounted cosmetics space, along with others department stores.
Sporting goods powerhouse Dick’s also tried to curb Amazon’s big day with a substantial sale of its own. Dick’s ran an online only, 20% off an entire purchase sale today, which it called “Cyber Monday in July.”
Dick’s and Macy’s were not the only retail giants to feel the burn from Amazon today. For more on how Amazon helped cause Best Buy to dip big, read here: Amazon (AMZN) Introducing Geek Squad Rival
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