Is Prime Day Scaring Other Retailers Into Deeper Discounts?

On July 11, Amazon Prime Day will offer hundreds of thousands deals to a record number of shoppers worldwide.

EDITED found that in the past six weeks, retailers have been discounting heavily in an attempt to steer consumers' wallets to their stores. The average discount is currently 39.9 percent off, with the biggest discounters including Lord & Taylor, Bluefly, ASOS, Neiman Marcus and Bon-Ton.

Additionally, the number of products experiencing their first discounts over the July 4 weekend increased 51 percent year-on-year. Sellouts, though, have dropped by 15 percent within the same timeframe, indicating that retailers have higher stock levels on the reduced items - or that consumers are less enticed by the sales.

As Amazon continues its quest for online shopping dominance, the clear opportunity is in apparel; its sales in the category fell flat last year, but it's a huge market for growth beyond electronics, particularly as in the last 12 months, Amazon has launched a private athleisure label and a "try before you buy" Prime Wardrobe feature, which is in beta.

"While last year there was little response by online retailers to Amazon Prime Day, this year we've witnessed a deluge of discounts ahead of July 11 - particularly in apparel," Katie Smith, senior fashion & retail analyst at EDITED. "However, discounting shouldn't be the knee jerk reaction to driving sales - shrewd retailers will dig into their data and trends to boost overall performance this year."
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