2% gap between Walmart, Amazon grocery pricing

Amazon Fresh truck
Amazon and Walmart are neck-and-neck in the grocery price war. (Atomic Taco/CC BY-SA 2.0)

It seems that the gap between prices of grocery items at Amazon and Walmart is closing, with only a 2% difference separating the two retailers.

According to a new study by global retail analytics firm Profitero, which looked at products in grocery, beauty and household supplies, a 1.85% average difference separates Walmart and Amazon's prices for groceries, while Target and Jet.com prices were about 6% higher than Amazon's. 

Walmart's prices were among the most competitive with Amazon in all categories, with an average price difference of 3%. And the tightest gap was in CPG prices, suggesting that this category was more prone to price wars. Walmart matched Amazon prices on 53% of all CPG products and 67% in grocery. And specifically, the prices of Amazon Prime Pantry averaged about 11% lower than those found at other retailers. 

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In the category of beauty, Profitero found that Jet.com is closing in on Amazon with a price gap of just 1.4%. Walmart's beauty prices were about 5% higher than Amazon's and Target's prices were almost 7% higher.

But online beauty prices fared the worst, as the prices on Walgreens.com and CVS.com were about 30% higher than Amazon's. 

“Amazon still reigns as the low-price leader online, but it’s evident that Walmart is making grocery a key battleground for challenging that leadership,” said Keith Anderson, senior VP of strategy and insights at Profitero. “Our latest study confirms that price gaps in online grocery are much narrower than what we found to be the case across other non-grocery categories. Walmart is clearly positioning to win shopper loyalty through aggressive pricing on everyday household essentials.”

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