Data from Kantar Worldpanel reveals that Amazon UK posted its highest ever market share in the Entertainment sector for the 12 weeks ending 22 December 2013. Sales on Amazon UK now represent more than a quarter of the entertainment market, demonstrating why retailers need to be monitoring and responding to online competitor prices if they want to compete effectively.
Amazon UK sales accounted for more than £1 in every £4 spent on entertainment in the final quarter of 2013, an increase of 5.9% compared to the same period in 2012.
Kantar’s Entertainment Retail Barometer reveals that in comparison, supermarkets had an overall combined market share of 33.3% as Sainsbury’s, Tesco and Asda all reported increases of less than 1%. Despite HMV accounting for one in six entertainment purchases made in quarter four, the retailer’s overall market share during the period fell by 8.5% to 12.5%.
“Amazon traditionally performs strongly in gifting at Christmas and this year was no exception,” said Fiona Keenan, strategic insight director at Kantar Worldpanel. “Almost a third of all entertainment gifts purchased in the final quarter of 2013 were bought from the retailer and this drove its market share across all categories.”
The increasing dominance of Amazon – as consumers hunt for the best prices – demonstrates why brick-and-mortar retailers need to be monitoring and responding to the prices of their online competitors on a regular basis. As Profitero previously reported, Amazon.com makes more than 2.5 million price changes on a daily basis. This number of price changes is only going to increase as the retail space becomes more competitive. If retailers want to avoid losing out on sales, they need to be monitoring Amazon’s prices on a daily basis using an advanced price intelligence solution.
Discover how Profitero delivers critical online pricing intelligence to more than 40 global retailers so they can compete more effectively with Amazon. Email us at sales@profitero.com or visit www.profitero.com to find out how we can help you grow sales and increase margins.
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About Profitero
Profitero is the leading global provider of online competitor pricing data. We provide both bricks & mortar and online retailers with their competitors’ prices, promotions and full product assortment information. Profitero’s accurate and timely competitor intelligence enables our customers to make better informed and more profitable pricing decisions, helping them to increase sales as well as margins.
More than 40 global retailers, including Staples, Sam’s Club, Tesco, Waitrose and Ocado, rely on Profitero Price Intelligence to:
- Benchmark competitor prices
- Manage their prices and promotions
- Attract price sensitive shoppers
- Negotiate better with suppliers.
Our pricing data can be seamlessly integrated into price optimization solutions such as Blue Yonder, Revionics and IBM DemandTec, to deliver more accurate and effective price optimization. Profitero is also the preferred supplier of online competitor pricing data to Nielsen’s retail customers across more than 100 countries.
To discover how Profitero can help make your pricing smarter, contact us at sales@profitero.com or visit www.profitero.com.