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Amazon Prime Day 2022: What to expect from retailers this year

Yahoo Finance tech editor Dan Howley discusses what to expect this year from Amazon as well as other retailers like Walmart and Target as the two-day Prime Day event kicks off.

Video Transcript

JULIE HYMAN: All right, thing number three this morning, we got to talk about retail, because Amazon Prime Day or Prime Days really, can we call it Prime Days now, kicks off the annual retailer's annual two-day sales event for Prime members. This year, Amazon of course, has been joined by other retailers. Has in past years as well.

Target, Macy's Best Buy, they're all looking to clear out excess inventory with their own events and try and get people in the door. Yahoo Finance's Dan Howley has more on what to look out for this Prime Day. How is this Prime Day going to be different, if at all, from those we have seen in the past, Dan?

DAN HOWLEY: You know, it's interesting, because there hasn't really been that huge push regarding Prime Day that we've possibly seen in the past. I know there's been an ad that I've seen running on TV or at least streaming. And that's essentially all that you're getting. There's not that wild amount of hype that we've seen in prior years.

I know I've mentioned this before, but there's no concerts with Taylor Swift or Ariana Grande or anyone like that we had seen. That was really kind of the hype machine that was built around Prime Day, and we're just not seeing that right now. And you could talk about how that's probably related to the fact, or most likely related to the fact that Amazon's e-commerce business is underperforming as a result of the kind of huge investments they made during the pandemic.

And that's all, the purchasing that people have been doing online is kind of pulled back as they go back to brick and mortar stores, or just decide to cut back in general as a result of the ongoing inflation issue. But it is definitely a difference than prior generations of Prime Day or Prime Days. Let's just call it Days from now on. I'm sanctioning that, it's Days.

JULIE HYMAN: Thank you, thank you.

BRAD SMITH: OK, yeah, so as long as it's what, three, five or seven days, we're still technically prime numbers here we're talking about. So, I mean, at the end of it.

JULIE HYMAN: Oh, not good.

BRAD SMITH: Yeah, I tried, I tried, math jokes, right. So Dan, I mean, when we look across the competitive environment, it's also at a time where a company in Walmart has said that they're not going to compete directly with Amazon's Prime Days perhaps, but at the same time, there are a lot of other deals out there that are coinciding with when Amazon is trying to drive a bunch of traffic. But is Amazon expected to see the same amount of traffic for its Prime Days given some of those other competitive offerings and people that are trying to get into other rewards programs?

DAN HOWLEY: Yeah, look, I think it's still going to be a huge day for them. I just don't think it's going to have that kind of explosive growth that it used to have. I mean, it's still going to be billions of dollars in devices or products or everything from diapers to doorknobs basically are on sale. So you're going to see that amount of sales as usual.

Perhaps a single digit boost over prior years, but I don't think it's going to be that absolutely incredible jump that we had seen throughout the pandemic really. But yeah, there are some competitors that are pushing their sales to kind of coincide with this or definitely coincide with this. You have Target with their own Deal Days, which actually has very good deals going on there. Best Buy has Black Friday in July. Macy's had been running a Black Friday in July event.

And Walmart, they're not doing exactly a sales event tied to beating out Prime, but they have been having these kind of Deal Days going on throughout the summer. So it's an ongoing sale, but really, if you're a Prime member, the best place to go is Prime for now. If you're not a Prime member, then you could sign up for a month, but why bother. You can look at all these other competitors now.

BRIAN SOZZI: All right. Well, happy shopping. Dan Howley, thanks so much, we'll talk to you later.