FMCG UK Price Comparison (November 2019): AmazonFresh undercuts leading rivals by at least 6.1%

Edge by Ascential’s price comparison analysis matches a minimum of 3,563 branded products from AmazonFresh against those from Asda, Morrisons, Ocado, Sainsbury’s, Tesco and Waitrose.

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Edge by Ascential’s price comparison analysis matches a minimum of 3,563 branded products from AmazonFresh against those from Asda, Morrisons, Ocado, Sainsbury’s, Tesco and Waitrose.
 
The price comparison encompasses the following categories:

  • Baby
  • 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.
 
The price gap widened once again between AmazonFresh and rival supermarkets.
On November 1, AmazonFresh was at least 6.1% cheaper than its leading rivals. The price gap between AmazonFresh and all the supermarkets widened this month compared to September 1, except for Sainsbury’s, whose price gap from AmazonFresh reduced from 9.6% to 7.5%.

Morrisons, that had the second smallest price gap from AmazonFresh on September 1, was surpassed by Sainsbury’s this month as its price gap widened to 9.6%. Asda remained the closest in price with an average price difference of 6.1%.
 

The percentage of price matches between AmazonFresh and all other retailers decreased across the board.

Sainsbury’s saw once again a decrease in the number of price matches compared to our previous analysis, but this time it led to AmazonFresh being more expensive on 2.9% more products than on September 1. Morrisons saw the biggest decrease in price matches compared to September 1, but in this instance in favour of products for which AmazonFresh offered a lower price.

Compared to September 1, Sainsbury’s experienced the biggest price gap reduction in Health & Beauty and became the closest competitor to AmazonFresh, despite a 12.9% price difference. The price gap between Sainsbury’s and AmazonFresh also reduced in the Grocery and Home Care categories.
 
Overall, the price difference grew the most in the Baby and Home Care category. In the Baby category, the change was almost exclusively driven by Morrisons (+13.6%) and Sainsbury’s (+12.3%), while the price gap decreased at Ocado and Tesco.

Additionally, the price gap between AmazonFresh and Morrisons widened in all other categories too, with the exception of Grocery where it remained unchanged.

Analysts at Edge by Ascential looked at the 1,715 products available across the seven retailers on November 1 to understand which one offered the most competitive prices. 

Over half (58%) of all products could be purchased at their lowest price on AmazonFresh. AmazonFresh, however, seemed to favour a price-matching strategy on these key lines as many of the products could be purchased for the same lowest price from at least one of the other six retailers. Sainsbury’s and Asda, on the other hand, offered the unique lowest price on 11% and 10% of the 1,715 products, respectively, against 6% of AmazonFresh and only 1% of Tesco.

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