00:00 Speaker A
The Prime Day Deals of Amazon will stand for most shoppers this week for most shoppers, because it is expanding the characteristic store period for the first time to four days. But this year, just like in recent years, it is not alone. Brooke Dipalma from Yahoo Finance now joins us with more, Brooke.
00:16 Brooke Dipalma
Good afternoon for both of you. Certainly what we have seen in recent years is really Amazon because of their retail rivals. Think of Target, think specifically by Walmart, but so many others want this large splash of savings such as Target, Home Depot, Lowe's, Best Buy, even Tractor Supply and Ulta Beauty. Well, they also want to take action. But let's take a closer look at one of their biggest competitors, Walmart. Well, Walmart, they are really their ante when it comes to their e-commerce company. In the last quarter, that e-commerce company here in the US has just become profitable, and now they are really double this week on their offer. Instead of just having a four -day event such as Amazon Prime, they want to do it bigger. And so Walmart has a six -day event from 8 July to 13 July. That is the surpassing of Amazon Prime's Day event of July 11 or July 8, earlier until July 11. Now some sources tell me that Amazon is clearly the big winner this week. And certainly, customers, just thoughts, they first go to Amazon, they will look at the prizes. But in the end what they could do, somewhere else in this area where consumers are so conscientious about how many things cost. They are really conscientious about where exactly they want to spend here. And so they go somewhere else. They go to that Walmart, they go to these other retailers. But this can be an excellent opportunity for Walmart. That is what some analysts tell me. In particular, they are real memberships here. The Walmart Deals Week, they eventually seduce the Walmart Plus customers, something that was launched in 2020 to register. They say that we offer a 50% discount until mid -July, and that can be a big chance for Walmart. But if you really look at another company that Walmart wins, that is Walmart -Supermarkt here. Of course they have praised that with recent profit calls that they win more customers with a high income, and that Walmart Plus membership is also usually a higher income. But when you look at the figures, boys, Walmart's e-commerce activities is much lower than the activities of Amazon here when it comes to how much money they bring in. If you take a look here last year, you saw that Walmart brought in around $ 121 billion when it comes to their e-coconut company. That is of course much lower than the online stores of Amazon's e-commerce business. And also, if you think about how many membership costs they bring in, Amazon also surpasses how much Walmart Plus comes in when it comes to membership costs. And the top here is that Walmart Plus subscription is much lower than Amazon Prime. They also offer that half at the moment. And so it can seduce customers. That is ultimately what Walmart wants here. They want to take away the eyes of Amazon.
5:20 AM Speaker A
Will there be certain categories, Brooke, where Walmart would think, okay, we may have a kind of competitive advantage here? Would it be, you know, for example, would it be the sale of food?
5:32 AM Brooke Dipalma
Of course. So 60% of the American sale of Walmart is supermarket. And Amazon must eventually make it about this. An analyst who tells me that one of the biggest things that Amazon, or rather Walmart should pay attention to, is when Amazon becomes competitive on their supermarket. And what we have seen in recent months is really investing Amazon, looking around, seeing exactly how they can really integrate and that Whole Foods Acquisition can grow that happened in 2017, just a few years ago, it looks like the pandemic. But really, they try to seduce consumers here.
