[November 22, 2017] |
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Target and Walmart Improve Competitive Position Against Amazon, Says Annual Boomerang Commerce Report on Holiday Pricing and Assortment of Toys and Games
Boomerang Commerce, the leading Retail
Performance Management solution, today releases its annual "Boomerang
Insights: Toys Category" report comparing top retailers' pricing,
promotion and assortment of this holiday season's popular toys and games.
Key findings across data from Amazon, Walmart, Jet.com, Target (News - Alert), and
Toys"R"Us show:
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Amazon remains unchallenged as the everything store: Amazon has
over 6 million items in its Toys & Games category alone. For
comparison, Target offers just over 16,000 items, and Walmart has
fewer than a million in the same category. For these and other items,
Amazon utilizes a pricing strategy that optimizes based on popularity,
competitively pricing items that will most likely influence a
customer's perception of value.
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Walmart emerges as a top contender: Walmart maintains the U.S.
retail world's second-broadest assortment. In one analysis of a basket
of popular toy items, Walmart had a 75-percent product overlap with
Amazon, whereas Target had a 30-percent overlap with Amazon, and
Toys"R"Us had a 29-percent product overlap.
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Target reverses YOY pricing challenges to offer most competitive
toy pricing: In Boomerang's 2015 and 2016 reports, Target lagged
in competitive pricing. This year, the retailer has risen to become
the most competitive in termsof pricing for this sample of toys. For
the basket of popular items on Amazon, Target was only 5 percent more
expensive than Amazon, whereas Jet was 8 percent more expensive, and
Toys"R"Us and Walmart were 13 percent more expensive.
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Supply chain issues vex Jet, Walmart and Toys"R"Us: Although
Walmart and Jet had the greatest overlap with the sample of Amazon's
products, Walmart was out of stock on 16 percent of the most popular
items, and Jet was out of stock on 20 percent at the time of our
analysis. This was also the case at Toys"R"Us where 22 percent of the
most popular matched items were out of stock.
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Consumers win the day: The real winners this holiday season are
consumers, since major retailers are actively managing pricing and
assortment and offering significant promotions throughout the weeks
ahead of the holidays. Target and Toys"R"Us are aggressively
encouraging consumers to start holiday shopping earlier this year by
offering deep discounts: 25-percent off all toys at Target and
site-wide sales at Toys"R"Us.
"Based on data from Boomerang Commerce's analysis, Amazon's strategy is
to closely monitor every major retailers' holiday pricing, which makes
consumers the real winners in the holiday shopping season," says
Boomerang Commerce CEO Guru Hariharan. "The toys category is a strong
indicator for which retailers are up for the challenge and which fall
short. This season's winners will need to accelerate efforts to compete
with Amazon on pricing, product assortment, product availability and
customer service."
Boomerang Commerce Insights reports are produced annually for different
product categories. In this report on toys and games, Boomerang analyzed
1,800 items throughout the online stores of six leading toy retailers:
Amazon, Jet.com, Target, Toys"R"Us and Walmart. The analysis is based on
600 randomly selected items from each of three tiers: best-sellers,
moderately popular items and less-popular (specialty) products. More
details and examples for specific products are in the full
report from Boomerang Commerce. The data used was compiled during
October 2017.
About Boomerang Commerce
Founded in 2012, Boomerang Commerce is a leading technology company for
retailers and brands to grow their e-commerce businesses. Led by
veterans from Amazon and McKinsey, our sales performance management
applications enable retailers and brands to drive profitable growth,
streamline operations and realize their e-commerce goals in today's
hyper-competitive, customer-driven world. Our products rapidly analyze,
detect and recommend smart, data-driven decisions at scale. Our
customers include 12 of the top 30 retailers, including Staples (News - Alert), GNC,
and Groupon Goods. The company is backed by Madrona Venture Group,
Shasta Ventures and Trinity Ventures and has headquarters in Mountain
View, California. To learn more, visit www.boomerangcommerce.com.
View source version on businesswire.com: http://www.businesswire.com/news/home/20171122005605/en/
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