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

BY Gina Acosta

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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Executives’ Club of Chicago to name WBA’s Stefano Pessina as 2016 International Executive of the Year

BY Michael Johnsen
CHICAGO – The Executives' Club of Chicago will be awarding Stefano Pessina, CEO Walgreens Boots Alliance, with the 2016 International Executive of the Year Award. 
 
Each year, The Executives’ Club of Chicago honors an individual whose exemplary leadership has resulted in significant contributions to his/her company and to the global business community with the International Executive of the Year Award. Selection considers innovation, position within the industry and personal and corporate modeling of values-based leadership. 
 
The last retailer to be recognized with this award was Michael Duke, former CEO and chairman of the executive committee for Walmart, who was presented with the award in 2014. 
 
Moderating the presentation will be Mark Larson, partner, U.S. Retail and Consumer Leader, KPMG. 
 
The Executives' Club of Chicago is the city's premier membership and networking organization focused on senior executives networking, development and innovation. The Club serves as a platform for executives to build relationships, share ideas, develop new business opportunities and participate in world-class programming. 
 
 
 
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It’s not all gloom and doom: April sales surprise

BY Marianne Wilson
While you wouldn’t know it from first-quarter slump among department stores,  total retail sales posted their biggest increase in April in a year, allaying fears of a consumer falloff.  
 
Total retail sales rose 1.3% last month, fueled by strong automobile and online sales and rising  gasoline prices, the Commerce Department reported Friday. Excluding automobiles, gasoline stations and restaurants, sales rose 0.7% in April over March, according to the National Retail Federation, more than the 0.3% economists had predicted.    
 
“Today’s retail sales data suggests that consumer activity, the primary driver of economic activity, has not lost its momentum,” said NRF chief economist Jack Kleinhenz.  “This sets the stage for an upturn in economic growth in the second quarter and should be encouraging for Federal Reserve policymakers as they contemplate interest rate adjustments.” 
 
With the exception of setbacks in building materials and general merchandise, April’s  gains were broad-based including online, apparel and furniture.  The highest increase was in the online/direct mail sector,  where sales jumped 2.1%. 
 
Sales rose 0.9% at food and beverage stores; 0.7% at furniture stores; 1% at clothing and accessories stores; 0.9% at health and personal care stores; 0.3% at bars and restaurants; and 2.1% online.
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