00:00 Speaker a
Amazon Prime Day offers will be the most important for most buyers this week as it extends its sales period for the first time to four days. But this year, as in recent years, he is not alone. Yahoo Finance Brooke Dipalma joins us now with more, Brooke.
00:16 Brooke Dipalma
Hello for both of you. Of course, what we have seen in recent years is certainly the Amazon being accepted by their retail competitors. Think about the target, think about Walmart specifically, but so many others want to get into this big savings such as Target, Home Depot, Lowe’s, Best Buy, even tractors and Ulta Beauty. Well, they also want to get involved in the action. But let’s take a closer look at one of their biggest competitors, Walmart. Well, Walmart, they really increase their forefront when they talk about their e -commerce business. In the last quarter, that electronic commercial business here in the US has just become profitable, and now they really double their offer this week. Instead of just having a four -day event, such as Amazon Prime, they want to do it bigger. So Walmart hosted a six -day event from July 8 to July 13. This is the Amazon Prime Day event since July 11th. Or July 8th. Until 11 July Now some sources tell me that Amazon is clearly the biggest winner this week. And really, customers, just in mind, they will first go to Amazon, they will look at prices. But in the end, what they can do is in another environment where consumers are so honest about how much it costs. They are actually honest about where exactly they want to skip here. So they will go elsewhere. They will go to that Walmart, go to these other retailers. But it can be a great opportunity for Walmart. This is what some analysts tell me. Specifically, what they really want to get here is membership. Walmart has a week, they finally entice those Walmart Plus customers – what was launched back in 2020 to sign up. They say: Hey, in mid -July, we will offer a 50% discount, which can be a big opportunity for Walmart. But when you really look at another business won by Walmart, the Walmart food business is here. Of course, they mentioned that because of the latest earnings that they get more buyers of higher income, and that Walmart Plus membership is also usually higher income. But when you look at the numbers, guys, Walmart’s electronic commercial business is much, much smaller than Amazon’s business when it comes to how much money they bring. If you look here last year, you can see that Walmart has brought about $ 121 billion when they need their e -commerce business. This is, of course, much smaller than Amazon e -commerce business online stores. Also, when you think about how much membership fees they bring, Amazon also surpasses a landslide, how much Walmart Plus brings when you need to pay membership fees. In addition, the upper half is that the Walmart Plus subscription is much smaller than the Amazon Prime. In addition, they currently offer that side. So it could lure customers. Finally, it wants Walmart here. They want to distract from Amazon.
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Will there be certain categories in Brooke, where Walmart thinks, well, we will have some competitive advantage here? Would it be, for example, would it be food sales?
05:32 Brooke Dipalma
Yes, sure. So 60% of Walmart US sales are foods. And that’s why you can worry about Amazon. One analyst tells me that one of the biggest things to pay attention to Amazon, more precisely, Walmart, is if Amazon becomes competitive in their food business. And what we have seen in recent months is really Amazon Invest, look around, see exactly how they could actually integrate and grow the acquisition of Whole Foods that happened back in 2017, just a few years ago, seem to pandemic. But in reality, they try to lure consumers with that.