retail news in context, analysis with attitude

Kantar Retail has released a new basket study concluding that Walmart Supercenters are less expensive to shop than both Amazon.com and Walmart.com.

According to the study, Walmart.com's "basket was 8% more expensive than the Supercenter’s. Edible grocery and general merchandise were the most expensive while HBA was in parity with the Supercenter. Notably, items across baskets were not on Rollbacks at either Walmart venue.

"Amazon’s basket was 16% more expensive than the Supercenter’s. Edible and non-edible grocery sub-baskets were the largest contributors to the high cost of the Amazon basket. Compared to the Supercenter, the edible grocery basket was 35% higher at Amazon and the non-edible grocery basket was 11% higher."

And, "Amazon’s basket was 7% more expensive than Walmart.com. Amazon’s most competitive offer was in the general merchandise sub-basket. Higher third-party (3P) pricing greatly contributed to Amazon’s more expensive basket."

However, the analysis also suggests that Amazon does not necessarily want to be the low-price leader - that it believes that a "vast selection" and "fast delivery" will combine to make it the preferred choice of consumers.
KC's View:
I think that such a study has to be taken in context - Amazon, because of its price transparency and algorithms, is bale to decide which products it can and should be lowest on, and then it is so.

That said, the competition is going to be intense. With lots of collateral damage.