For the first time, CPG manufacturers have ranked Amazon amongst the top 10 retailers in this year’s Kantar Retail PoweRanking study. The survey benchmarks how trading partners view each other in the manufacturer-retailer relationship, with Amazon recognised as a future Power Retailer.
The 17th annual PoweRanking study from Kantar Retail – based on input from 600 US retailer and manufacturer respondents – reveals that Amazon is the only online retailer ranked amongst brick-and-mortar stores as a top 10 ‘Best of the Best’ retailer. Last year Amazon ranked at number 14 and according to Kantar, has climbed into the top 10 through enhancing its online shopping experience.
The web giant is also seen to be challenging Walmart as a ‘Power Retailer’ of the future, according to America’s leading manufacturers who have ranked the top movers in the next 15 years. One manufacturer respondent commented: “As online shopping continues to grow, Amazon is set up perfectly to continue capturing share of the market. They have an incredible equity and trust with shoppers, what appears to be a solid business model, and strong leadership in place.”
Discussing Amazon’s entry into the retail mainstream, Kantar Retail believes that traditional brick-and-mortar retailers are going to find it increasingly hard to compete with Amazon’s combination of convenience, value and understanding of shoppers.
Amazon’s recent announcement that it will deliver on Sundays – in partnership with the United States Postal Service – is yet another assault on traditional retailers. “The three big pieces of growth for us are selection, lower prices and speed,” Dave Clark, Amazon’s vice president of worldwide operations and customer service, told USA Today. “Adding an additional day is all about delivery speed.”
This latest move by Amazon is guaranteed to make the holiday season yet more competitive. Ensure you are benefitting from competitive price monitoring solutions such as Profitero which enable you to benchmark your prices against Amazon to offer the most competitive price on the market.
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