As consumers cut back on spending amidst an impending recession and rising inflation, retailers are doing everything they can to bring them back inside their stories.
Amazon Fresh, for example, is leading the way by reducing prices on its grocery items.
The multinational technology company’s grocery delivery service and brick-and-mortar stores are discounting items by as much as a third of their retail price. The best part? This isn’t a one-time thing.
The marked-down prices are expected to last for weeks with changes happening all the time.
Aside from Amazon, other retail giants like Walmart and Target are feeling the lack of customer traffic and are combating lower prices.
The goal of these retailers is obvious: make consumers spend more.
As paying customers are always incentivized to spend more for discounted times, Amazon could see a surge in traffic going forward. However, the bigger question is, will this be enough to offset the profit loss?
Aside from the 30% discount, Amazon is offering a 10% savings on online grocery items for Prime members.
Roughly two years after the global pandemic ended, retailers have to navigate treacherous waters once again as they battle an invisible enemy: inflation.
If consumer spending doesn’t improve, expect retailers to become more aggressive with their price cuts.