Amazon's higher prices are an opportunity for Target, Walmart

LAS VEGAS -- Target and Walmart’s beverage and breakfast product pricing is significantly cheaper than Amazon's, according to a new study.

Research conducted by Boomerang Commerce and presented at Shoptalk Monday in Las Vegas suggests that Target and Walmart could lure customers away from Amazon by expanding their assortments of pantry goods — such as canned food, snacks and other non-perishables — while maintaining competitive pricing.

“Amazon has cultivated a reputation for being a low-price leader, but Boomerang Commerce’s analysis exposes key opportunities for other retailers to retain their existing customer base and pull new shoppers away from Amazon,” said Boomerang CEO Guru Hariharan. “This is a significant vulnerability that Amazon’s competitors can exploit right now, particularly in markets where Amazon does not yet have same-day or one-day delivery.”

Key findings from the sample set of data analyzed by Boomerang:

  • For the top 100 beverage items on Target, the identical products on Amazon were 97% more expensive and 93% more expensive on average among Target’s top 100 breakfast items.
  • For the top 100 beverage items on Walmart, the identical products on Amazon were 105% more expensive and 73% more expensive on average among Walmart’s top 100 breakfast items.
  • The average retail price for an item in Amazon’s top 100 beverage items is $23.28. In contrast, the average retail price for an item in Target’s top 100 is $4.13, while the average retail price for an item in Walmart’s top 100 is $6.06. Though the items are not identical across each retailer’s top 100, the findings show that consumers buy higher-end items at Amazon and also pay a higher margin for these grocery goods across the board. Average prices for the respective top 100 breakfast items at Amazon are $13.64, at Target are $7.95 and at Walmart are $6.55.

 

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