Edge by Ascential has conducted a price comparison analysis matching a minimum of 3,791 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.
How much cheaper is AmazonFresh really?
On average, AmazonFresh was cheaper than all retailers in the analysis. Asda, despite a wider price gap compared to our previous analysis, was again the closest in price, being 9.2 percent more expensive than AmazonFresh, up from 7.6 in September.
With the exception of Sainsbury’s (from 12.4 down to 12.1 percent), the price gap between AmazonFresh and all other retailers has also widened. Tesco experienced the biggest increase, up by 2.7 percent, positioning it even closer to Waitrose and Ocado.
Although the percentage of products cheaper in AmazonFresh compared to Tesco decreased (-0.8 percent), those that were cheaper in Tesco decreased even further (-3.5 percent). This resulted in a higher percentage of price matches and a larger price gap, on average, between the two retailers.
Looking at Sainsbury’s, the percentage of products that were more expensive in AmazonFresh increased from 10.9 percent to 16.0. This was at the expense of price matches and caused the gap between the two retailers to close.
Although the average price difference between Ocado and Amazon Fresh did not change significantly compared to our previous analysis, the proportion of price matches varied considerably. Price matches reduced from 42 percent to 34.1, resulting in a higher percentage of products being cheaper in Ocado than in AmazonFresh.
Compared to 1 September, all retailers became more competitive in the Beers, Wines & Spirits category, excluding Morrisons and Tesco, and in the Health & Beauty category, excluding Asda.
However, all retailers in the analysis became less price competitive in relation to AmazonFresh in the Baby and Grocery categories. Tesco, in particular, became less price competitive in all categories, except Health & Beauty. Its price gap to AmazonFresh especially widened in the Home Care (+5.5 percent) and Grocery (+3.4 percent) categories.
Sainsbury’s was the only retailer in the analysis to reduce its overall price gap to AmazonFresh since 1 September. The retailer became more price-competitive particularly in Health & Beauty, the second biggest category in our analysis. The price difference shrank from 20.0 percent to 13.8, positioning Sainsbury’s as the closest retailer to AmazonFresh in the category.
We took a closer look at what drove the price gap reduction in Health & Beauty in Sainsbury’s. The Beauty subcategory, about nine times larger than Health, significantly contributed to such a reduction, with the price difference having dropped from 20.2 to 12.9 percent between periods. The price difference in the Health subcategory, instead, increased by 2.4 percent compared to 1 September.
Within the Beauty category, we focused on the three main subcategories; Hair, Skincare and Toiletries. Although all three contributed to the reduction of the price gap, Toiletries had the biggest impact (-9.7 percent). This was driven by a jump, up from 3.7 to 16.8 percent, of products being more expensive in AmazonFresh, and a reduction of those where it was cheaper, leaving the proportion of price matches almost unchanged.