Jefferies Survey: Amazon Shoppers Show Resilience Amid Inflation Concerns
Summary
A Jefferies survey reveals Amazon shoppers are largely resilient to inflation, with 62% maintaining or increasing spending. Prime membership remains a strong loyalty driver, with 73% of shoppers being members, despite some churn risk. Amazon continues to lead in shipping and product selection, reinforcing Jefferies' 'Buy' rating on AMZN stock due to strong platform loyalty and pricing power.
Jefferies Survey: Amazon Shoppers Show Resilience Amid Inflation Concerns
Publication Date: 2025-07-07 06:56:09
Despite widespread concerns over rising prices and trade tariffs, U.S. Amazon (NASDAQ:AMZN) shoppers are demonstrating remarkable commitment to the platform, according to a recent Jefferies survey. The poll, which surveyed nearly 700 U.S. consumers, indicates steady spending behavior, with 62% reporting they spent the same or more on Amazon in the past three months.
Spending Holds Steady Despite Inflation Fears
While a significant 80% of respondents expressed concern about price increases attributed to tariffs, the actual impact on consumer purchasing habits appears limited:
- Only 3% reported completely ceasing their purchases on Amazon.
- 31% indicated they are spending less.
- 34% noted a reduction in shopping frequency.
However, Jefferies analysts did identify early signs of consumer caution. Their report highlighted, "In the event of worsening inflation, 45% said they would reduce Amazon spending rather than shift to other retailers," suggesting a potential vulnerability if economic pressures intensify.
Amazon Prime Drives Loyalty and Retention
Amazon's Prime membership program continues to be a critical driver of customer retention and loyalty:
- 73% of surveyed shoppers are Prime members, significantly outperforming competitors like Walmart+ (26%) and Target Circle (22%).
- 57% of consumers intend to maintain their Prime membership. However, 19% are considering cancellation, indicating a slightly higher churn risk compared to rivals such as Walmart+ and Costco (NASDAQ:COST).
Jefferies anticipates a surge in Prime sign-ups during Amazon's upcoming four-day Prime Day event, scheduled from July 8–11. The extended duration and anticipated deeper discounts are expected to make this year's event particularly impactful, especially among younger demographics.
Amazon Still Leads in Core E-Commerce Metrics
The survey reaffirms Amazon's dominant position across several key online retail categories:
- Shipping: 72% of respondents rated Amazon as #1, significantly ahead of Walmart (13%).
- Product Selection: 74% identified Amazon as best in class for product variety.
- Pricing: Amazon ranked second in value (37%), trailing only Walmart (46%).
This robust brand strength underpins Jefferies' continued bullish outlook on Amazon. The firm maintains a Buy rating on AMZN stock, citing strong platform loyalty and the company's relative pricing power.
Final Take
Amazon remains a formidable force in the online retail sector, demonstrating resilience even amidst an inflationary environment. The strength of its Prime membership program and superior logistical capabilities are instrumental in helping Amazon retain significant wallet share as tariffs and broader macroeconomic pressures evolve. The Jefferies survey reinforces the platform's inherent resilience and provides a clear rationale for why AMZN stock continues to be a Buy recommendation for many investors.