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Walmart and Target to Directly Challenge Amazon on Prime Day

By Rich Duprey – Updated Sep 30, 2020 at 8:47AM

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The pandemic has upended how retailers approach the coming Christmas shopping season.

Walmart (WMT 0.62%) and Target (TGT -1.22%) announced they are holding major sales events that will overlap Amazon's two-day Prime Day extravaganza on Tuesday, Oct. 13 and Wednesday, Oct. 14.

It indicates retailers are not willing to allow Amazon to have the field to itself this close to Christmas and they'll need to fight for every dollar.

Woman in front of laptop holding a credit card and looking at shopping bags

Image source: Getty Images.

Scrambling for dollars

Prime Day typically takes place during the middle of July, but was delayed this year by the COVID-19 pandemic. The National Retail Federation says consumers may begin their holiday shopping in October this year, meaning any retailer waiting for the traditional start of the season after Thanksgiving Day may find itself left out.

Walmart announced its Big Save event will begin on Oct. 11 and run for five days through Oct. 15, with some special deals appearing on its website on Oct. 5. It could possibly steal some of Prime Day's thunder and sales by starting earlier and going longer.

Target says it will host its Deal Days sales promotion on Oct. 13 and 14, the same two days as Prime Day, and promises to offer significant savings on hundreds of thousands of products on its site.

Other retailers are also planning to cash in on the heightened consumer interest in finding deals that Prime Day typically spurs., for example, will be launching its annual Customer Day event on Oct. 4 and running it for 36 hours. The discount retailer said it will offer up to 70% off on thousands of products.

It makes sense for retailers to try to get out in front of Amazon this year because they lost tens of millions of dollars in sales due to the coronavirus and need to make up as much as it can between now and Christmas Day.

John Mackey, CEO of Whole Foods Market, an Amazon subsidiary, is a member of The Motley Fool's board of directors. Rich Duprey has no position in any of the stocks mentioned. The Motley Fool owns shares of and recommends Amazon and recommends the following options: short January 2022 $1940 calls on Amazon and long January 2022 $1920 calls on Amazon. The Motley Fool has a disclosure policy.

Stocks Mentioned

Walmart Stock Quote
$153.37 (0.62%) $0.95
Target Stock Quote
$165.03 (-1.22%) $-2.04 Stock Quote
$95.50 (-1.08%) $-1.04 Stock Quote
$26.24 (-1.43%) $0.38

*Average returns of all recommendations since inception. Cost basis and return based on previous market day close.

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