The 2021 holiday shopping season is shaping up to be the most expensive in history due to global inflation and ongoing supply chain problems, but you can still find a great deal if you know where to look.
Global eCommerce analytics company Profitero today announced the results of its fifth annual U.S. Price Wars study. The study analyzed prices for 15,530 products across 15 categories from 12 leading online retailers, including Amazon, Best Buy, Target, The Home Depot, and Walmart.
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“Supply issues and rising manufacturing costs will make the 2021 holiday season the most expensive of all time”
For the fifth consecutive year, Amazon took the crown as the cheapest online retailer in the U.S., with prices that were 14% cheaper on average than competitors. Amazon beat 11 of the 12 retailers examined in every category, with online pet retailer Chewy being the only company to match Amazon’s low prices in any category, however Walmart and The Home Depot are not far behind.
“Supply issues and rising manufacturing costs will make the 2021 holiday season the most expensive of all time,” said Sarah Hofstetter, President of Profitero. “We have found that online prices are up nearly 6% since last October and for some categories, like fashion and home furniture, they are up by almost 9% and 11%, respectively. The good news is that you may be able to find the right price if you shop around and know where to look.”
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Other key findings of the report:
- Walmart is closing the price gap: Walmart’s prices are now, on average, within 4% of Amazon across all categories, a decrease of 1 percentage point from the 2020 Price Wars study. Prices at Walmart were found to be within 5% or less of Amazon in 13 of 15 categories. The retailer was most competitive for beauty items, food and beverages, and home furniture, all of which were within 1% of Amazon prices. Walmart struggles most to match Amazon’s prices for electronics and video games, which were 9%, and 13% more expensive, respectively.
- Target’s price gap widens: While Amazon and Walmart continue to fight for the lowest prices, Target is slipping further behind. The retailer was 15% more expensive than Amazon, an increase of 2 percentage points from last year. Prices for beauty products, home furniture, vitamins and supplements, health and personal care, and food and beverage were, on average, 22% higher than Amazon. Target’s most competitive category was baby products, although prices were still 6% higher than Amazon.
- Specialty retailers keeping things close: For the third consecutive year, Chewy has matched Amazon’s prices on pet food and supplies. Meanwhile, The Home Depot is not far behind Walmart in keeping pace with Amazon, with prices that were only 6% more expensive. The retailer was also within 4% of Amazon for tools and home improvement supplies, a decrease of 4 percentage points from last year, and within 5% or less for appliances, home furniture, and sports and outdoor supplies.
- Amazon is better for holiday gifts: Shoppers looking for the latest phone, laptop, video game, or toys can rest easy when making purchases at Amazon. The retailer was found to be, on average, 13% less expensive than Best Buy, Target, and Walmart for electronics, 15% cheaper than Target and Walmart for video games, and 11% cheaper than The Home Depot, Macy’s, Target, and Walmart for toys and games.
“The battle between Amazon and Walmart is closer than ever before and it may come down to whether you are an Amazon Prime or Walmart+ member,” added Hofstetter.