Amazon fired up the holiday shopping season with its second major sales event of the year as rivals from Walmart to Best Buy joined in with discounts to woo customers grappling with inflation-squeezed Christmas budgets
The Amazon logo is seen at the company's logistics centre in Boves, France, October 6, 2021 REUTERS/Pascal Rossignol
"The middle- to upper-income consumer is likely to take more advantage of the current deals to get a jump on the holiday season ... at the lower end of the income spectrum, those consumers may hold off and buy closer to need," Telsey Advisory Group analyst Joseph Feldman said. Inflation and early discounting is also expected to slow holiday spending for the year. U.S. online holiday sales are expected to rise this year at their slowest pace since at least 2015 and grow only 2.5% to $209.7 billion, according to Adobe Analytics.Major retailers such as Target and Walmart have been giving big discounts for months to get rid of excess inventory that piled up as consumer's cut back on discretionary spending.
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