Prime Day helps boost physical retail as well as online
Updated: Sep 19
Huge ad spend for Prime Day has driven success in creating a new retail event to rival
Black Friday on and offline.
According to Statista, Prime Day 2023 saw a total spending of £1.15 billion, a growth of 2.5% compared to £1.12 billion in 2022. As per Dr Steinman, professor of consumer psychology at Widener University, this event has become deeply integrated in customers' culture, firmly proving itself in the retail calendar alongside giants like Black Friday and Cyber Monday.
StoreBoost data highlights that Amazon Prime Day has a substantial impact on footfall in both brands and malls, particularly in categories like electronics, cosmetics, and health items, which see increased popularity during the event. As per Jungle Scout, the brands spending increased by over 300%, meaning some of them not collaborating with Amazon could struggle. In that order, many other retailers on the categories mentioned boost the competition by introducing their own campaigns with massive discounts of 40%, 50% and even 60%. It's worth examining the footfall data of UK malls, but we must also consider the reasons for the inconsistent footfall before and during Prime Day.
Despite rumours suggesting that Prime Day might negateively impact physical stores, the data indicates otherwise. In reality, Amazon Prime Day boosts sale for stores, thanks to the significant factor that the customer activity is increased by the event. The StoreBoost data reveals that the footfall uplift take place as customers are drawn to both online and offline retail during this period, leading to substantial benefits for brands.
Mall Number 1 Footfall Performance
Gen Z prefer to shop in store vs online native Gen Xs.
The correlation between generations and footfall data on Prime Day is notable. As per Jamie Grill-Goodman's research for RisNews, based on A Marketer’s Guide to Reaching the Generations, Generation Z (born 1997-2012) tends to prefer the in-store experience, with 31% of them being non-Amazon customers. On the other hand, millennials (born 1981-1996) are the most likely than any other generation to make purchases on Prime Day.
Amazon Prime Day have a powerful effect on our shopping behaviour, acting as a catalyst and driving customer engagement and purchase behaviour. The magnetism of limited-time discounts motivates us to save money and avoid shopping in physical stores or malls for a period before Prime Day, knowing that great deals await on the famous e-commerce website, as we can see on the footfall data of Mall Number 2.
Mall Number 2 Footfall Performance
However, physical stores can adapt to Amazon Prime Day and compete with online retail by implementing certain strategies:
Enhance in-store and in-mall displays. Visual information plays a significant role in influencing customer perception and behaviour.
Get Programmatic. pDOOH allows you to set and upload you campaigns in minutes. It also targets specific audiences in real-time based on many factor as location, tuime and audience demographics.
Boost the competition. Numerous leading brands organize sales events during and after Prime Day, yielding favourable results. On July 12th, the second day of the Amazon event, Mall Number 1 experienced a 2% increase in footfall, while Mall Number 2 saw a 3% uplift.
Collaborate with StoreBoost. By the usage digital out-of-home advertising screens at a low cost it allows you to activate your advertising when store footfall is low. StoreBoost's sensors assess both store and mall/street footfall, setting high benchmarks for the best retail experience and incremental footfall overperformance.
Amazon Prime Day has made history and intensified competition in the summer market but has also maximized the sales potential and connection with customers. In that order, it’s crucial for brands to think about their marketing strategies and prepare for new campaigns accordingly.