Walmart, Toys R Us most expensive for toys

Walmart and Toys R Us are among the most expensive retailers for toys, failing to compete with Amazon on price heading into the holiday shopping season, according to a new report by Boomerang Commerce.
 
The Boomerang Commerce Retail Analytics Report for Toys analyzed prices on 1,200 items and identified the failure of some of the largest retailers, including GameStop, Jet, Target, Toys R Us and Walmart, to compete on both price and assortment.

Walmart and Toys R Us were found to be the most expensive with prices 7 to 10 percent higher, respectively, than Amazon. Target, GameStop and Jet prices came within 3 percent of Amazon's prices on tracked items. Just last month, Boomerang Commerce found Walmart to be the most expensive retailer when it came to consumer electronics.

Walmart came closest to matching Amazon's breadth of assortment, with a 40 percent overlap. No other retailer had more than a 35 percent overlap in assortment on best-selling items.

Newcomer Jet was found to compete most closely with Amazon, averaging less than 1 percent higher across all toys and beating Amazon prices on most of the best-selling items.

Toys R Us may be the most expensive, but was also very aggressive on depth and span of discounts, with 32 percent of items discounted at a median of 24 percent off the list price. It's a pricing strategy Boomerang Commerce called, "either two-pronged or bi-polar."

"With the holiday shopping season approaching, every retailer is under the gun to improve sales and profits and to stock the hottest products—but also to price and discount smarter than their competitors," said Guru Hariharan, CEO of Boomerang Commerce.

Failure to match Amazon's assortment and unnecessary discounting practices could collectively cost retailers tens of millions of dollars on Black Friday, according to the report. 

For more:
-See this Boomerang Commerce report

Related stories:
Amazon beats Walmart in early holiday pricing
40% of shoppers plan to spend more this season, mostly online
48% of online retailers confident holiday will outperform
55% of mobile shoppers will track deals on apps
Jet steals Amazon's thunder, is it for more than one day?

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