Summary List Placement
Amazon is using a tried-and-tested method as it plays catch-up to competitors in the grocery market: offering lower prices.
Amazon dropped its average grocery prices by 2.3% during the third quarter, the steepest cut among leading US grocery retailers, according to data from research firm Profitero. The study, based on prices of more than 700 grocery products, found that Walmart had dropped its prices by 1.5%, while groceries at Target were 6.7% more expensive over the three-month period ended in September.
Amazon’s pricing strategy reflects the company’s continued focus on growing share in the competitive grocery space by undercutting competitors. While Amazon is the largest e-commerce site in the US, it still lags far behind traditional retailers like Walmart, Kroger, and Target in the grocery market, as shoppers still prefer to touch and see the produce they buy.
“It reflects a commitment to the grocery category and to the overall value proposition to consumers that low prices are a fundamental reason to shop at Amazon, in addition to convenience and selection,” Keith Anderson, Profitero’s SVP of Strategy and Insights, told Business Insider.
Amazon’s low-price strategy isn’t just limited to the grocery space. A separate report by Profitero published this week …read more
Source:: Businessinsider – Tech