Amazon, Walmart Kick Off Holiday Sales With ‘Massive’ Deals Expected

tech.hindustantimes.com:

Holiday deals are coming back, bringing a measure of relief for US shoppers squeezed by inflation.

Tech gadgets to sporting goods will see “massive” online discounts, with the best bargains likely in late November, Adobe Analytics said in a report Monday. Walmart Inc. is already touting deals on computers, toys and air fryers this week, while Amazon. com Inc. will begin a two-day “early access” sale Tuesday. Target Corp.'s weekly Black Friday deals have started.

Retailers are racing to tap seasonal demand as they struggle to reduce bloated inventories, and they have little choice but to dangle price cuts in stores and online to entice consumers who have been hammered by this year's surge in inflation. That's a big shift from 2021, when relatively flush shoppers snapped up goods amid fears that transportation snarls would lead to shortages.

“Last year, there wasn't a lot of product and retailers didn't need to discount,” said Brian Yarbrough, an analyst at Edward Jones. “Fast forward to this year and we're in the exact opposite situation.”

Online holiday sales from Nov. 1 through Dec. 31 are projected to be $209.7 billion, Adobe said, up only 2.5% from a year ago. That pales in comparison to last year's 8.6% gain. And when accounting for the expectation that annual US inflation rate will be around 8%, many retailers may actually make fewer sales this year, though at higher prices.

Part of the reason for the sluggish outlook for November and December is that retailers are trying to coax customers into starting their shopping early.

Amazon's “Prime Early Access Sale” is expected to pull some spending forward, much as the company's Prime Day in July fueled a rising tide for all retailers, said Taylor Schreiner, senior