Target, Walmart cheaper than Amazon on key grocery items

Target (NYSE:TGT) and Walmart's (NYSE:WMT) beverage and breakfast product pricing is about half of that offered by Amazon (NASDAQ:AMZN), according to analysis by Boomerang Commerce.

Looking specifically at the top 100 beverage items on Target's e-commerce site, the identical products on Amazon were 97 percent more expensive. For the top 100 breakfast items, Amazon's were 93 percent more expensive, according to the data.

Compared to Walmart, beverages on Amazon were 105 percent more expensive and breakfast items were 73 percent more expensive.

The average retail price for an item on Amazon's top 100 beverage list is $23.28 while the average retail prices for similar items at Target and Walmart are $4.13 and $6.06, respectively. The average retail prices for the top 100 breakfast items is $13.64 on Amazon, $7.95 at Target, and $6.55 at Walmart.

Although the items are not identical on all three retailers' top 100 lists, the results find that consumers buy higher-end items on Amazon and pay higher margins for groceries across the board.

"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's 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."

In a June 2015 study comparing online grocery carts of both Walmart and Amazon over the course of two months, the cost difference maintained between the two retailers was initially a very small gap. However, prices were volatile, and Amazon and Walmart had 2 percent and 10 percent swings on basket prices.

The pricing of online food and beverage items can play an important role in the future of digital shopping competition as the rate of online grocery shopping has nearly doubled in the last two years. According a recent study from Brick Meets Click, online grocery penetration rose from 11 percent in 2013 to 21 percent in 2015.

For more:
- see this Boomerang Commerce press release

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