Brand View has conducted a price comparison analysis matching a minimum of 3,650 branded products from AmazonFresh to that of Asda, Morrisons, Ocado, Sainsbury’s, Tesco and Waitrose.
The price comparison encompasses the following categories:
- Beer, Wines & Spirits
- Grocery (Ambient, Fresh and Frozen 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.
Our analysis revealed that, on average, AmazonFresh was cheaper than all other retailers analysed. Asda was again the cheapest of the six retailers in comparison to AmazonFresh.
Compared to our previous analysis (1 July 2018), the average price gap between AmazonFresh and Asda, Morrisons and Tesco has narrowed while it has widened with Ocado, Sainsbury’s and Waitrose. Asda was again the cheapest retailer in comparison to AmazonFresh, which went from 9.1 percent to 7.6 percent more expensive than Amazon Fresh. The order of the retailers, compared to AmazonFresh, was unchanged from 1 July with Waitrose again having the greatest average price difference to AmazonFresh.
The narrowing gap between Asda and AmazonFresh is due to the retailers price matching more as opposed to AmazonFresh being cheaper. On 1 July, AmazonFresh price matched 45.5 percent of products to Asda, this increased to 54.2 percent. At the same time the percentage of range where AmazonFresh was cheaper fell from 41.1 percent to 35.4 percent.
Sainsbury’s saw the greatest widening of average price difference to AmazonFresh, this was a result of less pricing matching with AmazonFresh cheaper on 53.4 percent of products in September up from 51.3 percent in July.
The number of price matched products between Asda and AmazonFresh increased by 7.8 percent, with the number of Grocery price matched products rising by 15.8 percent. Health & Beauty price matches fell by 18.5 percent.
Within Grocery, we can see the biggest percentage increase was in the Chilled Foods category where the number of price matches increased by 57 percent. The majority of this increase was in the Yogurt category alone and was across all brands.
Our analysis also investigated how the competitiveness of AmazonFresh varied across categories and found that the retailer continued to be especially price-competitive in the Baby and Health & Beauty categories.
The price gap increased in five of the six retailers analysed in the Health & Beauty category. Asda had the closest pricing to AmazonFresh at 17.0 percent more expensive up from 16.0 percent in July. Tesco was the only retailer that became more competitive between July and September, it was 22.3 percent more expensive – down from 23.3 percent.
All six retailers became comparatively more expensive on Beers, Wines & Spirits, compared to AmazonFresh, between July and September. Waitrose changed the most, moving from 4.9 percent more expensive to 10.4 percent.
*Analysis conducted on 1 September 2018