NEW YORK, July 10 (Reuters) - While American children
may wish summer vacation would never end, retailers want
back-to-school season to start earlier than ever -- preferably
now -- and are timing promotions ahead of Amazon's ( AMZN )
Prime Day.
With deals on sneakers, computers, kids' clothing and
backpacks, Walmart ( WMT ), Target ( TGT ) and Shein hope to
entice parents to start back-to-school shopping and capture
dollars that might otherwise go to Amazon ( AMZN ), which holds Prime Day
on July 16 and 17.
Although in many communities school does not resume until
late August or September, the campaigns are launching this week
and next, on average two days earlier than in prior years.
"Retailers are looking to grow market share," said Brian
Jacobsen, chief economist at Annex Wealth Management. "It's not
good enough to have bigger discounts. You need them earlier than
your rivals."
Target ( TGT ) launched a week-long event on Sunday, two days
earlier than last year, offering 30% off on school uniforms and
backpacks, including from its in-house brand Cat & Jack. Walmart ( WMT )
is holding its "largest deals event ever" from Tuesday to
Thursday, also two days earlier than last year.
Shein is holding a seven-week back-to-school sale starting
July 15, two days ahead of its sale last year and a day ahead of
Amazon Prime Day. Bytedance's TikTok Shop is running a deals
event from Tuesday to July 17.
Brian McCarthy, a retail strategy consultant at Deloitte
Consulting, said the firm last year saw more families plan to
spend the majority of their back-to-school budgets by the end of
the July.
Jewelia Stanley, 32 of Tampa, Florida, expects to spend
$1,200, at least $300 more than last year, on back-to-school
items for her three kids, including clothes from China-based
retailers Shein and Pinduoduo's Temu, uniforms from
Walmart ( WMT ) and supplies from Amazon ( AMZN ).
Stanley's priciest purchase will be shoes from brands like
Nike ( NKE ) or New Balance, which can cost $99 to $250 a pair.
Back-to-school spending last year was an estimated $41.5
billion, a record, for children in kindergarten to 12th grade.
The number grew to $135.5 billion when college students were
included, according to the National Retail Federation.
Prime Day, Amazon's ( AMZN ) summer extravaganza, spans two days.
Continuing to keep competitors on their toes, the company pushed
the event back five days from last year. But Amazon ( AMZN ) also
released early Prime Day deals on Tuesday for Sony speakers,
T-shirts, phone cases and other merchandise.
When it launched a decade ago, Prime Day reshaped a
traditionally slow time of year for retailers. Sales boomed and
competitors had little choice but to follow suit.
Last year, Amazon ( AMZN ) had its biggest single day of sales in
company history on the first day of Prime Day. U.S. online sales
across retailers during the event hit $12.7 billion.
Prime Day draws shoppers hunting for all kinds of deals, not
just on notebooks and lunch boxes. The event is estimated to
generate 1% to 2% of Amazon's ( AMZN ) full year net sales, which were in
$574.8 billion in 2023.
The earlier and earlier start to back-to-school promotions
has precedent in a similar strategy by Walmart ( WMT ) and Amazon ( AMZN ) ahead
of holidays. They launched year-end promotions in October last
year, well ahead of Black Friday and Christmas.
Shoppers last year bought 375 million individual items
during Amazon's ( AMZN ) Prime Day. "Our members are looking for
savings," said Jamil Ghani, worldwide vice president of Amazon
Prime. "The economic situation of the last five years has been
tough, and everybody is looking to stretch their dollars
further."