Prime Day sales event, and other summer deals, are expected to entice a majority of consumers to open their wallets and spend, in spite of concerns about inflation and the economy, according to findings in an AdobeADBE
Commerce study released today.
Adobe Commerce is predicting that online spending for summer deals likely will be strong because 61% of consumers surveyed in June said they were looking forward to Prime Day and other summer sale events.
Of those who plan to shop for Prime Day and other retail deals, 76% said they will spend more or the same amount as last year, when Prime Day broke records for spending. Amazon’s summer Prime Day sale is a two-day event this year, scheduled for July 12 and 13.
The Adobe commerce report is more optimistic about Prime Day spending than many analysts who fear the annual sales event is losing momentum.
Amazon recently told select third-party sellers to prepare for a second Prime Day event in the fall. That is being interpreted as a sign Amazon expects it will need something extra to boost spending this year.
In April Amazon reported its slowest quarterly revenue growth since 2001.
The Adobe Commerce report found that inflation and economic concerns could make most shoppers more eager to take advantage of deals. But 24% who plan to skip the sales said they will not shop on Prime Day because they have less discretionary income due to inflation.
More than half of likely Prime Day shoppers surveyed said saving money is their top motivation, while others said they want to get ahead of holiday and back-to-school shopping.
“A large percentage of consumers are stating that they still plan to shop and spend big during the summer holiday sales season, especially around Prime Day,” Tory Brunker, Senior Director of Product Marketing at Adobe, said.
Gen Z shoppers expressed the most interest in Prime Day and other summer retail sales events, with 85% saying they were looking forward to the sales, compared to 79% of millennials, 64% of Gen X and 38% of baby boomers.
Consumers said they are planning to use the sales to buy apparel (43%), home goods and home improvement (29%), health and beauty (26%), computer electronics (22%), pet products (17%) and toys (16%).
While spending “may be impacted by inflation and worries about what’s coming from an economic perspective,” the survey showed that “retailers are really positioned well to win big this summer, especially those that are leveraging personalization for their shopping experiences,” Brunker said.
Retailers will have to work to win their share of sale spending this year, according to Adobe, by making sure to offer features consumers are demanding, including flexible payments, fast delivery, curbside and in-store pickup options, as well as personalized offers and immersive shopping experiences.
“The research showed that consumers are more likley to make purchases when they receive that type of experience,” Brunker said. “Personalization can happen at any stage, whether it’s in the store, via digital channels, or how they buy and shop, how they’re paying,” she said.
Consumers told Adobe Commerce that they like to receive personalized promotions by email (61%), during the shopping experience (53%), and via text after visiting an e-commerce site or store (34%).
Gen Z shoppers were the most interested in augmented reality shopping experiences, at 52%, followed by 50% of millennials and 44% of Gen X. They also were the most interest in shopping in the metaverse, at 46%, and in participating in a live-streaming event, at 51%.