Amazon Prime Day Sales slip, retail industry falling behind: Report

Retail Sales: Facteus a credit card transaction data provider has said that Amazon's sales made only slight gains and the broader retail industry is falling behind. This, even while Amazon has said that this week's Prime day sales with two day discount promotion outpaced last year's event which suggested the retail industry looking at brighter months.

Lackluster Spending

The retail sector was looking for a rebound after a year of sluggish consumer spending. However, the lackluster spending comes as a troubling signal for the sector. As per Bloomberg, retailers are facing a disappointing end to the year with few choices. The retailers are forced to take on risky promotions to keep their heads above water — a strategy that will widen the gap between the haves and have-nots of the sector.

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As per Facetus, Amazon brought in an estimated $144.53 in average spending per customer for the retailer, amounting to a 2% increase from last year’s tally. However, other retailers with similar discounts saw a 1% fall in sales compared to last year, noted Salesforce.

The top-line growth has seen a blow as consumer spending on 'nice-to-have' goods have slowdown. As per Bloomberg, Best Buy Co. Inc., Dollar Tree Inc. and Target Corp. all have narrowed their guidance for the rest of the year, saying inflation has put a crimp in consumers’ shopping habits.

Giant Vs Small Retailers

While Amazon and Flipkart can afford flashy discounts due to their sister businesses, small retailers have to tread the water carefully. As per market research firm Mintel, Three in five consumers who plan to shop this winter say they want to spend the least amount of money possible. This sets up an environment for retailers for risky discount wars as they fight for customers.