Increase in Visits to Stores, Including Amazon Prime Day and Competing Programs Created by Walmart, Target and Best Buy

January 2023 started the year with a bang - but over the past few months, retail footfall has shrunk compared to previous years as ongoing inflation is impacting consumer spending. Still, the holidays hold the potential for an increase in traffic.

Main Points

• Looking toward the second half of 2023, July sales events could spur an increase in visits to brick-and-mortar stores, according to Insider Intelligence.
• Amazon's Prime Day — which will take place on July 11 and 12 this year — is primarily online-only, though the company's brick-and-mortar stores will also offer discounts.
• You'll also get to take advantage of deals on pivotal categories like beauty supplies.

As we look toward the second half of 2023, according to Insider Intelligence, July sales events (including Amazon Prime Day and competing programs created by Walmart, Target and Best Buy) are expected to spur an increase in visits to brick-and-mortar stores. Can give Other retail vendors are organizing their summer sales to customize Prime Day. July 10 to 13 is Walmart's ( WMT ) "Plus Week," and July 9 to 15 is Target's ( TGT ) "Circle Week." Best Buy (BBY) competes with a "Black Friday in July" event from July 10 to 12.

As the first quarter of the year is characterized by the absence of major sales events, the data suggests that special festivals attracted consumers to stores. Even holidays traditionally associated with discounts – Valentine's Day, Easter, Mother's Day, Father's Day and even St. Patrick's Day – also led to increases in retail visits. However, Memorial Day - usually the first significant sales event of the year - saw a relative low jump.

It is also possible that in 2023, customers are becoming more careful in their spending, and they have to visit stores to buy gifts, chocolates and other specialty items for the best deals, while they go to the market for general purchases. Don't like to travel. Also, the difference between last year's number of retail footfalls and visits in 2023 has narrowed recently – indicating that customers may be fed up with their shopping spree and may be ready to go to the mall. The increase in the number of retail footfalls observed on major and minor holidays in the first half of 2023 could mean newly-cautious buyers are looking to hit the market for some entertainment.

Insider Intelligence analyst Suzy Davidkhanian states that "competitors have campaigned to convert this into a more national market share program, so it's conceivable that brick-and-mortar sales will increase as Target and Best Companies like Buy start promoting their sales in response to Prime Day."

How are offline stores doing during Amazon's Prime Day?

Amazon's Prime Day — which will take place on July 11 and 12 this year — is primarily online-only, though the company's brick-and-mortar stores will also offer discounts. However, many other brands with large scale offline stores are also running their promotional campaigns around the same time. Notably, Walmart Plus week from July 10 to 13, Target's Circle week from July 9 to 15, and Best Buy's Black Friday — July 10 to 12 — will all be Amazon's Prime Day equivalents.

According to Placer.ai, July's retail sales events may increase footfall to offline stores, especially among shoppers who are shunned by price hikes and are now looking for discounted prices. Many shoppers will also use the Fourth of July events to stock up on back-to-school essentials like clothing and accessories, while also taking advantage of deals on pivotal categories like beauty supplies.

The first half of 2023 has brought tough conditions for the retail sector. But when retailers start offering big discounts in July, things could improve ahead of the crucial back-to-school period.