In the price war between Walmart and Amazon, the brick-and-mortar chain has won the latest battle.
Walmart prices both online and in stores are 20 percent lower on average than Amazon’s, according to consulting company Kantar, which compared the prices of 36 items across a variety of categories. Still, Amazon might not be sweating the price gap, as the online retailer is generally better stocked and has a following of consumers that “trust Amazon will have a low price,” Kantar analyst Anne Zybowski told Bloomberg.
It may not be surprising that Walmart's products are cheaper, given the company's efforts to maintain that standard. In March, Walmart announced a plan to “reinvest” $2 billion in lower prices, DailyFinance reports. It has focused especially on rolling back its grocery prices, one area where the chain has a particular advantage over Amazon. Bisquick pancake mix, for example, cost only $6.12 at Walmart, compared to Amazon’s $14.52, Bloomberg reports.
But don’t count Amazon out yet. In addition to its loyal customer base and the convenience of online shopping it provides, the e-retailer has some other tricks up its sleeve. Last December, Amazon launched its Price Check mobile app which not only provides customers with the opportunity to compare prices while literally standing in Amazon’s brick and mortar competitors. In addition, the app brings the company valuable information at essentially no cost, according to Forbes.
Indeed, the price war between Amazon and Walmart is nothing new. Back in 2009, Walmart made a direct run at one of Amazon’s strongsuits, books, by lowering anticipated hardcover prices to $9. Likewise, over the past few years, customers are increasingly perceiving Amazon's goods as having more value than Walmart's, according to research firm YouGov, TIME reports.
Amazon's also winning in sales growth. The online retailer's sales increased 41 percent last year, while Walmart saw sales growth of just 1.5 percent over the same time period, Bloomberg reports.
SUBSCRIBE AND FOLLOW
Get top stories and blog posts emailed to me each day. Newsletters may offer personalized content or advertisements.Learn more