October 17, 2023
Stocks

Sales during Amazon Prime Day fail to meet expectations, leading to a disappointing conclusion for the retail industry at the end of the year, according to a report.

Amazon.com Inc. celebrated the success of this week's Prime Day sales, claiming that the two-day discount event "surpassed" last year's edition. While this flashy description implies a promising start to the holiday season for the broader retail industry, independent data from credit card transaction provider Facteus paints a more subdued sales picture. The data indicates modest gains for Amazon, but the overall retail sector is lagging. This lackluster spending trend raises concerns for the industry, which had anticipated a recovery after a year of sluggish consumer spending. Instead, retailers are confronted with a disappointing year-end, left with little choice but to resort to risky promotions to stay afloat. This strategy is likely to widen the gap between the more successful and struggling entities within the sector.

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