Amazon preps for a potentially big holiday season

Amazon on Thursday said it intends to hire 150,000 full-time, seasonal and part-time workers as it ramps up for the holidays. That’s the same number of employees Amazon said it planned to hire last fall.

The announcement comes just days after The New York Times reported that Amazon was freezing corporate hiring in its retail division for both online and brick-and-mortar stores.

But these positions, some of which come with a $3,000 signing bonus, are exempt from the reported freeze.

Amazon is looking for workers to pack, pick, sort and ship orders, with an average hourly pay of $19, the Seattle-based retailer said.

“Whether someone is looking for some extra money for a few months or a long-term career, the holidays are a great time for people to join Amazon, and many of our seasonal employees return year after year or transition into full-time roles,” John Felton, Amazon’s SVP of worldwide operations, said in a statement.

Target last month said it plans to hire 100,000 workers during the holiday season, while Walmart presented pared-down plans to recruit 40,000 employees.

Amazon’s added workforce might be much-needed, driven by demand for Amazon’s first-ever Prime Early Access Sale, scheduled for Tuesday and Wednesday, according to new research from data and tech company Numerator.

“The event is expected to set new records in household penetration and average household spend, capture additional holiday CPG categories and continue to drive Amazon’s growth in CPG market share,” Numerator said in a statement Thursday.

The research found that nearly one in three Americans will shop the early-deals sale, with average household spend surpassing $200 for the first time. That’s partially due to inflation-fueled prices as well as early holiday shopping, Numerator found.

What’s more, the research found that the October shopping event isn’t likely to cannibalize Amazon’s holiday sales, with most consumers saying they plan to buy more things from Amazon closer to the holidays.

And grocery is poised to take an even bigger share of those dollars than during previous Amazon sales, Numerator found.

Amazon’s Prime Day 2022, held in July, saw 17% of shoppers purchase groceries, with household and grocery items landing in the top items purchased for the first time, Numerator said.

“If deals are available, consumers are likely to use this Prime event to stock up on Halloween candy, Thanksgiving non-perishables and holiday baking ingredients,” the report said.

Retailers should pay attention to the inaugural Prime Early Access Sale, Numerator noted. During July’s sale days, Walmart saw a total store decline of 3 points, Kroger’s sales dipped 1.5 points and Costco’s sales fell 1 point. Target, which ran a competing deals event, saw a 0.5-point boost.