Amazon warns of weaker Christmas sales

28th October 2022 | Jack Oliver

Amazon has forecasted poorer Christmas sales, as the company’s shares dropped by more than 15% after the US stock market closed on Thursday night.

The rising cost of living, as well as a lower dependence on online shopping as people recover from the pandemic, is thought to be the main reason behind the slump.

Brian Olsavsky, Amazon’s chief financial officer, told analysts on a call: “We’re very optimistic about the holiday but we’re realistic that there are various factors weighing on people’s wallets.”

Jeff Bezos, the founder of Amazon and the second-richest man in the world, warned on Twitter about worrying signs in the economy and suggested it was time to “batten down the hatches”.

Amazon saw business boom in the pandemic as people turned to online shopping after high streets closed, but sales have slowed significantly as consumers return to shopping in person.

Andy Jassy, Amazon CEO, said in a statement: “There is obviously a lot happening in the macroeconomic environment, and we’ll balance our investments to be more streamlined without compromising our key long-term, strategic bets. What won’t change is our maniacal focus on the customer experience, and we feel confident that we’re ready to deliver a great experience for customers this holiday shopping season.”


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