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Profitero reveals lowest-priced U.S. retailers heading into the holidays

November 16, 2022
Mike Black
Written By
Mike Black

Study finds online prices are an average 13% less expensive on Amazon than other leading U.S. retailers across 15 consumer categories

BOSTON - November 16, 2022 — Global eCommerce analytics company Profitero today announced the results of its sixth annual U.S. Price Wars study. The study analyzed online prices for nearly 15,000 exact-matched products across 15 categories and 13 leading retailers, including Amazon, Walmart, Target, Best Buy and The Home Depot.

Profitero found Amazon to have the lowest online prices among all retailers studied, with prices that were an average 13% less expensive than competitors. This is a slight change from last year’s study when Amazon was priced 14% lower, on average.

However, the competition for holiday gift categories remains close, with retailers such as Walmart, The Home Depot and Nordstrom’s within 2-5% of Amazon’s prices, and pet retailer Chewy matching Amazon’s prices exactly for pet supplies. 

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According to Oracle Retail, one-third of consumers are worried they can’t afford all the holiday gifts they want to buy. And according to a recent McKinsey study, more than one-third of consumers said they were switching retailers for lower prices or discounts due to inflation.

“Consumers are starting to count every penny and this puts Amazon in a very good position to capitalize as the low-price leader in the market,” said Mike Black, CMO of Profitero. “That said, we know retailers are feeling the pressure to have a strong Q4 and will continue to discount very aggressively to prevent losing shoppers to Amazon. The more intense the competition, the more the consumer wins.”

Target is becoming more price competitive vs Amazon

Among the 3 biggest online retailers (Amazon, Walmart and Target), Amazon continued to lead the pack on price with prices that were an average 6% less expensive than Walmart and 16% less expensive than Target’s.

However, Target’s pricing did become more competitive with Amazon’s, compared to last year. The retailer gained ground in eight out of 17 categories studied: beauty, fashion, food & beverages, health and personal care, pet supplies, tools & hardware, toys & games and vitamins & supplements. Toys & games was Target’s most competitive category, with only a 6% price difference compared to Amazon.

“Traditionally, Target has been able to command premium prices due to their incredible brand and exclusive assortment. They still can, for sure, but I think we’re seeing them give way a bit as consumer spending starts to cool,” says Black.

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Download the full report here.

Methodology

Each day, Profitero monitors prices and other data on more than 70 million product pages across hundreds of unique retailer sites and mobile apps. For this study, Profitero analyzed online prices of 14,581 identical products across 15 categories over a 12-week period beginning July 11, 2022 and ending October 2, 2022. Retailers examined include Amazon, Best Buy, Chewy, CVS, Macy’s, Nordstrom, Petco, PetSmart, Target, The Home Depot, Walgreens, Walmart and Wayfair, which were chosen based upon online traffic, assortment of products, and a high level of consumer interest. Profitero’s methodology includes comparing online prices between retailers only on items that are identical (same UPC, brand and pack configuration). The study only compares first-party prices collected on the same day, with both retailers in-stock. Where prices were unavailable for both retailers on the same day for matched items (as in the case of out-of-stocks at one retailer), items were excluded from Profitero’s comparison.

About Profitero

Profitero is a leading, global eCommerce intelligence platform that provides brands with digital shelf visibility and actionable insights to grow market share and profits. Profitero’s technology monitors 70 million products daily, across 4,000 brands, 900 retailers and 50 countries, helping brands optimize search placement, product content pricing, stock availability, reviews and more. Please visit www.profitero.com.

 

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