Third-annual Prime Day could pose threat to grocers

Amazon’s much-ballyhooed Prime Day 2017 was July 11, in which Amazon Prime subscribers took advantage of steep deals on par with those common on Black Friday. Amazon also offered a free month of Prime membership for trying the program, which allowed for Prime Day participation.

Prime Day 2016 last July was the biggest sales day the retailer had experienced up to that point, with U.S. orders rising more than 50 percent compared with the first Prime Day in 2015.

Although the best Prime Day discounts were in the realm of durable goods, grocery retailers had cause for concern, according to Jordan Rost, vice president of consumer insights for New York-based Nielsen.

“From their private label products exclusive to Prime members to increasing availability of same-day delivery on fresh foods, it’s clear that grocery is and will continue to be a big focus,” Rost said.

The planned acquisition of Austin, Texas-based Whole Foods Market makes Amazon’s interest in dominating grocery all the clearer, while today’s discounts likely will create converts to online grocery ordering.

To learn more, read Randy Hofbauer’s article “Prime Day’s Threat Lies Not in the Deals” in Store Brands’ sister publication Progressive Grocer.