A Second Prime Sale Shows Amazon is Nervous About the Economy Too

Holiday bargain shopping is starting extra early this year. And that could be good news for shoppers, even if it signals slightly worrisome things for the economy. From a report: E-commerce giant Amazon announced plans Monday for "a new two-day global shopping event" exclusive to members of its Prime loyalty program. Dubbed Prime Early Access Sale, the promotion is similar to Prime Day, the annual sale held in July to generate a bonanza of orders and new subscribers. Rival retail giants Walmart and Target have already signaled plans to kick off holiday sales earlier than ever, setting the stage for a long holiday shopping season with significant discounts. With warehouses and store shelves suddenly full of inventory after two years of supply chain disruptions, deals will be easier to come by than since the start of the COVID-19 pandemic, say retail experts. Amazon's bonus sales event may be a sign that retailers are concerned that Americans will keep a tight grip on their wallets this holiday season because of fears over inflation, rising interest rates and predictions of an oncoming recession. An Amazon spokesperson said that the company -- with annual sales of more than $470 billion last year -- added the second online sale to help overcome such worries. "In light of inflation and economic head winds, we want to help members save throughout the season," said Amazon spokesperson Deanna Zawilinski. [...] Helping fuel the sales competition is an oversupply of merchandise -- including clothes, toys, electronics, furniture and other popular consumer goods -- that retailers ordered to meet expected consumer demand but that were delayed for months because of supply chain problems. The items are now taking up valuable space in warehouses and store shelves. With a recent surge in inflation and rising gasoline prices, Americans haven't been spending on such items as much as retailers anticipated. Store owners and retail operators now need to move those items off the shelves to make way for new holiday merchandise.

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