Amazon is beating Walmart and Target – again
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Amazon is winning the U.S. price wars, leaving Walmart and Target behind for the eighth consecutive year.
The e-commerce giant has once again claimed the title of “lowest-price” retailer, according to a recent study led by Profitero, an e-commerce analytics platform. The study analyzed over 13,000 products across 22 major U.S. retailers.
Amazon’s (AMZN-1.05%) pricing dominance spans 15 product categories, including electronics, apparel, and home improvement, with prices averaging 14% lower than its competitors. The study also reveals that Amazon’s prices for everyday essentials – such as beauty, baby, and household products – are 1% to 6% lower than other retailers. These are the very items that have become increasingly difficult for shoppers to access, as they are often locked behind glass shelves in brick-and-mortar stores.
This trend has caused frustration among shoppers, with one in four abandoning their purchases because they can’t easily access everyday essentials like deodorant or detergent, according to market research firm Numerator.
Retailers, including pharmacy giants like CVS (CVS+1.04%) and Walgreens (WBA-2.66%), say the locked shelves are a measure to deter theft, also known as “shrink.” However, while the strategy helps protect products, it has led to mounting frustration among consumers who expect a hassle-free shopping experience. As a result, many shoppers are opting for online alternatives – and Amazon is reaping the benefits.
The online giant has seen a $200 million sales boost as customers increasingly turn to its platform, while nearly $340 million in potential sales have been lost due to locked-up items, according to GlobalData, a data and analytics consulting firm.
Walmart (WMT-0.67%), which came in just behind Amazon in the Profitero study with prices only 5% higher on identical items, remains its closest competitor. Walmart has started locking up items like deodorant and baby formula, though it’s exploring solutions like smartphone access to unlock products for customers.
As the holiday season approaches, with Black Friday and Cyber Monday on the horizon, retailers are ramping up discounts to capture customer dollars.
For now, Amazon continues to lead the charge, rolling out fresh pricing tactics. Earlier this week, it launched Haul – a new online platform offering clothes and electronics for under $20 – aimed at competing with fast-fashion giants Shein and Temu.
