Retail sales, Amazon wage hike, and holiday promotions

The retail industry finished out the summer with a strong monthly sales report, big news from Amazon on wages and same-day delivery, and a slew of early holiday promotions from major players such as Walmart, Target, and Best Buy.

Not just gas

The US Census Bureau’s monthly sales report came in higher than expected, with sales increasing 1.2% month over month in August. The bump wasn’t just the result of higher prices at the pump. Categories such as electronics and appliances (+1.6%), furniture and home furnishings (+0.9%), and clothing and clothing accessories (+0.7%) all saw gains. Nonstore retail also jumped 2.6%.

Raising the floor

Amazon is raising the minimum wage for its full-time core operations employees to $20 per hour, bringing the average pay to nearly $24 per hour. The $1 wage hike represents a $1.5 billion investment from Amazon, which is also investing in expanded benefits and employee discounts, including a lifetime membership in the First Tech Federal Credit Union, 10% off everyday essentials on Amazon.com and Whole Foods Market online, and 20% off in store at Whole Foods Market.

The announcement landed on the same day a report from Business Insider revealed Amazon was planning a massive buildout of same-day delivery facilities. Based on a review of internal documents, the report found that the e-commerce giant planned to build 1,000 same-day delivery facilities by 2031, placing these hubs within 10 miles of 80% of Amazon Prime customers.

Early holiday promotions

The holiday sales season is ramping up earlier than ever. Both Amazon and Target announced major deal days in October, and Best Buy launched its holiday gifting center earlier than in previous years. The holiday forecasts are also starting to roll in, with Deloitte predicting gains between 4% and 4.8% from last year. The research firm sees higher gains from e-commerce, which it predicts will rise between 7.5% and 8.4%.