As inflation continues to keep the economy in check, more and more people are turning to discount retailers to cut grocery prices. And when it comes to two of the retail behemoths, Amazon and walmart, shoppers ask which one has the cheapest grocery prices online. One study says it’s Amazon all the way.
Profitero, an internet commerce analytics platform, stacked the two against each other and a handful of other key retailers and found Amazon had the lowest prices on food and consumables ordered online for delivery to the US and UK
Profitero compared open prices of approximately 15,000 items covering 15 major grocery categories. The conclusion of their report was that Amazon had the lowest prices compared to Amazon and 12 other US retailers, including Target.
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How much lower? On average, the study found Amazon prices were 13% lower.
“It’s a testament to their sophisticated price-matching technology as well as their bulldog tenacity when negotiating with vendors over cost,” said Mike Black, director of marketing at Profitero. “As consumers cut back on spending due to inflation (particularly in the more popular discretionary categories over the holidays), it will be interesting to see if Amazon can translate low prices into more sales compared to its rivals. .”
In the other categories, including Christmas gifts, the race has tightened. Pet supply retailer Chewy matched Amazon’s prices, according to the study. Walmart, Nordstrom and Home Depot were between 2% and 5% of Amazon prices.
Profitero did his research between July 11 and October 2, after Amazon Prime increased its contributions and ahead of Amazon’s second Amazon Prime Day in 2022, October’s Amazon Prime Early Access sale, as well as Walmart’s Black Friday offer for dayslaunched in early November.