Amazon's Prime Day Struggles Despite Record Sales

Amazon expanded its Prime Day discounts to four days this year, a move that resulted in record sales but fell short in U.S. sign-up numbers. The company registered 5.4 million sign-ups, 116,000 fewer than the previous year, missing its goal by 106,000 memberships, according to internal data reviewed by Reuters.

This shortfall highlights growing competition, notably from Walmart's enhanced membership program, and the effects of tariffs that dampened market expectations. Despite these challenges, Amazon's CEO Andy Jassy described the event as 'the biggest ever' with unprecedented savings for customers, though specific figures were not disclosed.

Analysts stress the strategic importance of Prime memberships to Amazon, accounting for substantial consumer spending and providing a competitive edge. Amazon aims to maintain growth by expanding its student discount program and curbing account sharing, strategies designed to attract new members and boost revenue.

(With inputs from agencies.)