Retail Discounts Are Set To Drive Online Spending to a Record $23.8B

Summer sales wars are heating up as retailers compete for consumer wallets. AmazonAMZN

and WalmartWMT

are locked in a head-to-head battle this week, with both companies launching their annual discount extravaganzas on July 8. Amazon extended Prime Day from two to four days, while Walmart countered by stretching its event to six days and bringing deals into physical stores for the first time.

• Adobe Analytics expects online spending to hit a record $23.8B during the combined retail discount period — matching the impact of two Black Fridays — with sitewide discounts of 10% to 24%.
• According to eMarketer, Amazon commands over 40% of US online sales, but Walmart’s digital division is quickly gaining ground with 20% annual growth.

Retail economics: eMarketer’s Sky Canaves noted, “The two retail giants are locked in heated competition for US consumer loyalty,” with Amazon setting early dates that force competitors to match or beat their timeline. While Jefferies surveys show Amazon Prime’s popularity is nearly triple that of Walmart+, third-party sellers are hedging their bets. Pattern’s Jared Mason, Amazon’s largest third-party seller, revealed they’re placing more “emphasis and focus” on Walmart’s platform, adding, “We’re happy that Amazon isn’t as dominant.”