The Lempert Report: A study pointed out a narrow price gap among online grocersBy Rebekah Marcarelli on Apr. 11, 2018[youtube https://www.youtube.com/watch?v=xI0-ZQCGY0E]As the grocery industry struggles to find its next act by adding grocerants, dietitians, clothing boutiques and other services, a new report from Profitero may be a precursor 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 and 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.”