Dive Brief:
- Grocery retailers nationwide are hitting back at Amazon's Prime Day with their own special sales and deal days. Giant Food Stores has announced Giant Direct Days, according to a press release, and will offer customers free grocery pickup or delivery through July 18. Customers can also earn up to five free items and a $10 gift card based on their purchase size.
- Boxed is having a two-day sale that will include 50% off private label toilet paper and 15% to 20% off snacks, condiments and beverages, the company told Grocery Dive in an email. Walmart’s three-day sale features discounts on grocery items like beverages, snacks and household items, though its big-ticket sales are outside of the grocery department.
- Kroger is offering a $40 discount on 12-packs of wine through July 17 and a "buy 5, save $5" promotion on some snack and household items. Target’s Deal Days include discounts like 25% off vitamins and nutrition and a $20 gift card for shoppers that spend $100. H-E-B is hosting a "Sizzling Summer Savings" event with 25% to 50% off kitchen appliances and 25% off makeup and nail care.
Dive Insight:
The abundance of sales across the nation shows that retailers are not content to sit by and watch Amazon rack up shopper dollars and secure more Prime members. Instead, they are piggybacking on the Prime Day buzz to attract consumers with their own deals.
In many cases, these retailers are also highlighting their membership-free formats, which allow all customers to be eligible for discounts as opposed to Amazon's exclusive, member-only deals. Combined with expanded and improved e-commerce efforts, customers are seeing widespread messages that Amazon isn't the only retailer that can offer discounts and delivery.
According to Profitero, 24% of U.S. Prime members are planning to make a grocery purchase during Prime Day. While that's a notable figure for Amazon and Whole Foods, it also shows how many more potential shoppers could be a captive audience for other retailers.
Now that Prime Day includes Whole Foods, there's an added layer of competition for grocery retailers that are already facing major pressure from new formats, e-commerce and slim margins. Traditional grocers that once only had to battle each other now have to figure out how to stand out against Amazon and Whole Foods, and this week, the counterpunches are flying.