Summer sales events kick off as inflation squeezes consumers

Summer’s biggest sales are starting, with major weeklong deals from retailers such as Amazon, Best Buy, Target and Walmart officially launching as early as Monday.

The wave of discounts comes at a time when inflation is at its highest point since early 2023, 4.2% year over year, and everyday costs continue to strain household budgets.

“If you have the consumer really thinking about the elevated prices they might be paying, maybe at the pump or in various sectors of the economy, it becomes incredibly important for them to get the value on essential goods,” said Vivek Pandya, lead insights analyst and director at Adobe Digital Insights.

Retailers are responding to that pressure through regular, big-ticket discounts on products like electronics, as well as everyday necessities.

Amazon Prime is advertising savings on groceries, like $1 red cherries. Walmart shoppers can find up to 50% off home products, Target will have up to 45% of select kitchen items and floor cleaning, and Best Buy will have televisions as low as $59.99.

While people stretch their budgets, U.S. consumer sentiment hit an all-time low in May. Still, spending remains resilient.

“American consumers have weathered the gas price shock of 2026 remarkably well,” Heather Long, chief economist at Navy Federal Credit Union said in a statement. The gas price highs related to the Iran war have dropped under $4 for the first time since March 30. “Spending has remained strong, even as real incomes have turned negative.”

Retail and food service sales are up 6.9% from this time last year, according to the Census Bureau’s report released last Wednesday, even as hourly wages fell behind inflation for the second straight month in May.

These deals are also happening a few weeks earlier than in past years. Amazon Prime’s international vice president told Reuters the shift was related to the World Cup and America’s 250th birthday.

Other retailers followed suit once Amazon announced the change, as major companies all compete for the same dollars.

Technology is also reshaping how shoppers find deals, with ads now appearing directly in generative AI tools. For example, Target said if a customer is interested in finding countertop cooking appliances, a labeled ad for air fryers sold by Target could pop up in ChatGPT for pilot users, distinct from the answers the large language model provides.

The strategy appears to be effective. According to an Adobe report published June 17, traffic from artificial intelligence sources converted into purchases at a rate 54% higher than those from non-AI sources.

“There’s a big opportunity for brands to think about how to drive up more activity from audiences from these sources,” Pandya said.

Shopping expert Trae Bodge cautioned consumers against solely using AI platforms to find deals. She instead suggested bargain-hunters make a list, then compare prices on specific products using a tool like Google Shopping. “You’ll have a sense of where those items are available and how much, and for how much,” she said.

The savings don’t end once people press the checkout button either, she said. “Some deal sites will have coupon codes or promo codes that can be applied additionally.” Shoppers should also try to pay with a credit card that has rewards to maximize value.

Pandya said Adobe expects a 9% growth over last year from the sales events. Adobe also said average daily online spending during Prime Day is expected to be 84% higher than the overall daily average for the month.

“We’re really talking about a Black Friday and a Cyber Monday’s worth of spend compressed into June,” Pandya said.

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