Consumers Embrace Early School Shopping Amid Prime Day and Other Marquee Sales

Which came first: Big July sales events or an early start to back-to-school shopping? 

Big-box store traffic traditionally dwindled in the early months of summer as Americans relaxed by the pool and embarked on vacations, according to retail experts. That’s changed in recent years as companies like Amazon (AMZN), Walmart (WMT), and Target (TGT) began staging major sales in July, and as Americans’ finances grew squeezed by inflation and higher prices, analysts said.

“Whether the mid-July promotional events created the earlier demand or are in response to it, parents have signaled that they are ready to start thinking about ‘back to school’” once July 4th is over, Brian McCarthy, principal of retail strategy at Deloitte, wrote in an email.

Whatever the case, the sales are picking up. Amazon’s Prime Day, which offers Prime members deals like half-off select Levi’s attire and 40% off some Samsung and Sony TVs, runs from July 8th to 11th. Target’s promotion for those in its free membership program runs from July 6th through 12th; Walmart’s sale, from July 8th through 13th. (Walmart and Target are giving those in their paid membership programs early access to sales, according to press releases.) And Best Buy (BBY) is slated to wrap up its own event tomorrow, the company said. 

July sales can help retailers clear out inventory and spur sales ahead of the end of their second quarter, paving the way for them to hand in better results, McCarthy said. Walmart, Target, and Best Buy’s second quarters conclude in late July or early August, press releases show. (Amazon’s comes a bit earlier, in late June, according to a press release.)

“Prime Day should promote an early start to back-to-school/college shopping during a quieter time in the retail calendar,” JPMorgan analysts wrote in a Wednesday note. Bank of America expects it to drive more than $21 billion in gross merchandise value for Amazon. 

Many Americans started shopping earlier for school supplies and the winter holidays during the pandemic, Katherine Cullen, vice president of industry and consumer insights at the National Retail Federation, wrote recently. This trend is accelerating this year as consumers worry that tariffs will lead to higher prices, her blog post said.

More than a quarter of back-to-school and college-bound shoppers had already started the process of browsing and buying supplies by early June, the trade group said. 

July sales “have become a focal point for shoppers looking to save on key items for the back-to-school season,” Cullen said in an email to Investopedia. “This year, shoppers are even more focused on finding savings in light of potential price increases and will be looking to key sale events this summer to help them pick up all the items on their lists.”