As the grocery industry struggles to find their next act by adding grocerants, dietitians, clothing boutiques and other services an new report from Profitero may be a pre-cursor to what comes next: a price war.
In Price Wars: Grocery, Household & Beauty, Profitero analyzed pricing for 21,000 products in grocery, beauty and household supplies, finding only a 1.8% average difference between Walmart’s and Amazon’s prices for grocery. Target and Jet.com were both found to be, on average, about 6% higher in grocery than Amazon.
Are we about to see a shift back to retailers focused on price? And at what cost to building a relationship with shoppers? Here’s what else they found.
“Amazon still reigns as the low-price leader online, but it’s evident that Walmart is making grocery a key battleground for challenging that leadership,” said Keith Anderson, SVP of Strategy & Insights at Profitero. “Our latest study confirms that price gaps in online grocery are much narrower than what we found to be the case across other non-grocery categories. Walmart is clearly positioning to win shopper loyalty through aggressive pricing on everyday household essentials.”