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FMCG Price Comparison (September): Amazon Pantry between 8.2% and 18.2% cheaper than leading rivals

By Chris Elliott

Brand View has conducted a price comparison analysis matching a minimum of 1,732
branded products from Amazon Pantry to that of Asda, Morrisons, Ocado, Sainsbury’s, Tesco and Waitrose.

The price comparison encompasses the following categories:

  • Baby
  • Beer, Wines & Spirits
  • Grocery (Ambient Foods and Drinks)
  • Health & Beauty
  • Home Care (Household Cleaning, Laundry and Pet Care)

The analysis only includes products where there is an exact match and does not include Own Label SKUs. This is a shelf price comparison and therefore does not include multi-buy promotions.

 

Results

Our analysis showed that, on 1 September 2018, Amazon Pantry was again the cheapest retailer on average. Asda, with an average price difference of 8.2 percent to Amazon Pantry, was the second cheapest retailer. Morrisons re-took its position behind Asda (10.7 percent more expensive than Amazon Pantry) after placing behind Sainsbury’s and Tesco on 1 July 2018 (11.1 percent more expensive than Amazon Pantry).

 

Sainsbury’s and Tesco were both more expensive than Amazon Pantry on 1 September than they were on 1 July. Sainsbury’s slipped from 9.1 percent more expensive to 13.4 percent and Tesco went from 10.1 percent to 13.9 percent more expensive.

On 1 July, Amazon Pantry was cheaper than Sainsbury’s on 51.2 percent of the items analysed, this increased to 56.5 percent on 1 September. Tesco became more expensive as more of its products price matched Amazon Pantry as opposed to being cheaper. Some 13.2 percent of products were cheaper in Tesco on 1 July this decreased to 6.6 percent on 1 September.

Overall, the percentage of products where Amazon Pantry was cheaper than its rivals was higher on four of the six retailers on 1 September compared to 1 July. Morrisons and Ocado were the only retailers where Amazon Pantry had a lower percentage of products cheaper on 1 September.

 

We further investigated price differences at a category level and found that all six retailers analysed were more expensive for Beers, Wines and Spirits and Health & Beauty categories on 1 September than 1 July. Because this was across all six retailers it suggests Amazon Pantry have made price cuts in these categories.

In the Grocery category, Asda was the only retailer that reduced the difference to Amazon Pantry compared to 1 July. It was 5.3 percent more expensive than Amazon Pantry on 1 July which reduced to 4.3 percent two months later.

The biggest change was on the Health & Beauty category where Amazon Pantry’s rivals were an average of 4.5 percent more expensive than they were on 1 July. The retailer with the biggest difference was Sainsbury’s which went from 10.6 percent (1 July) to 20.3 percent more expensive on Amazon Pantry on 1 September.

 

In the Health & Beauty category we analysed the three most popular sub-categories, which revealed the greatest change in average pricing was in the Hair sub-category. All six retailers saw their greatest change in pricing in this sub-category, ahead of Skincare and Toiletries, including Morrisons that went form 3.3 percent more expensive on 1 July to 21.5 percent on 1 September 2018.

In the Toiletries sub-category, four of the six retailers became more competitive, compared to Amazon Pantry, between July and September. Sainsbury’s and Waitrose were the only retailers that became more expensive, compared to Amazon Pantry, in this sub-category.

 

*Analysis conducted on 1 September 2018