Chart of the Week: Amazon vs. Walmart, Target, and Kroger
In the lead-up to this year’s Black Friday and Cyber Monday shopping blitz, analysts and consumers alike looked towards Amazon, one of the earliest proponents of e-commerce, as a harbinger for the retail sector during this year’s holiday season. This year’s Black Friday digits didn’t disappoint retailers or investors: Amazon saw more than an 18% increase in sales over last year, and shares of Amazon and many of its retail competitors also enjoyed a nice boost on Wall Street. The company’s dominance in online retail isn’t new news – but how much of a lead does the company really have over the competition?
How dominant is Amazon versus competitors?
Amazon is the clear leader in the e-commerce sector, as noted by our most recent Verto Index: in October 2017, Amazon received more than 180 million unique monthly users who spent an average of more than five hours per month spread across 30 monthly sessions – a sign that some consumers could be using the site and its apps on a daily (or near-daily basis).
Verto Analytics performed a competitive cohort analysis on Amazon versus three big e-commerce rivals, Walmart, Target, and Kroger. While all three of these competitors also operate brick-and-mortar retail outlets, they’ve also invested considerable resources in developing a robust e-commerce presence.
Verto’s competitive cohort analysis shows that while 94% of Walmart shoppers (Amazon’s #2 rival) also shopped on Amazon in October 2017, only 58% of Amazon shoppers visited a Walmart property in the same month. And 94% of Target shoppers also shopped on Amazon in October 2017, while only 31% of Amazon shoppers returned the favor to Target. The numbers are even more skewed for smaller e-commerce properties: Kroger saw 95% of its consumer base also shop on Amazon during October, but only 11% of Amazon shoppers also shopped on a Kroger property during the same month.