Amazon’s Lead Narrows, Says Annual Boomerang Commerce Report on Holiday Pricing and Assortment of Toys and Games

Year-Over-Year (YOY) Trends Suggest Consumers Can Benefit From Jet.com’s Competitive Pricing, Walmart’s Increased Assortment and Target’s Promotional Pricing

MOUNTAIN VIEW, Calif.--()--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. This year’s results reveal that Walmart is making big strides to challenge Amazon’s dominance. The retailer has more than doubled its online product assortment between Q1 and Q3 2016 and is leveraging its recent Jet.com acquisition for competitive pricing. Toys“R”Us is also pursuing a strategy of increased assortment, as well as offering exclusive product lines. Meanwhile, Target is eschewing assortment expansion in favor of special pricing promotions.

Key findings across data from Amazon, Walmart, Jet.com, Target, GameStop, and Toys“R”Us show:

  • Amazon is still, by far, the leading retailer for toys and games with over 5 million items in the category — compared with less than 100,000 for other retailers — and with a pricing strategy that optimizes based on external market and internal data signals.
  • Jet.com has the lowest prices, meeting or beating the usual leader Amazon by an average of 64 percent — up from 55 percent in 2015 — on its overlap of most popular items. Walmart is a close second to Jet by pricing 55 percent of popular items the same or lower than Amazon, but this represents a 9 percentage point decrease YOY. Meanwhile, Target increased its price competitiveness with Amazon by 8 percentage points YOY to meet or beat Amazon’s price on 42 percent of popular overlapping toys and games.
  • Walmart and Jet offer the most aggressive price discounts. Compared to list prices on Amazon, Walmart discounted 54 percent of popular items, followed by Jet with 47 percent, and Target with 41 percent. Concurrently, Target is seeking to win customers through promotions, such as 20 percent discounts for select toys, “buy two, get one free” games and its current “10 Days of Deals” campaign.
  • Walmart is becoming increasingly more competitive in assortment with a 66 percent overlap with Amazon’s most popular items; this represents approximately 1.8 times the nearest competitor.
  • After Walmart, Toys“R”Us has the highest assortment overlap (40 percent) with a sampling of Amazon’s popular items, representing a 5 percent improvement over last year.
  • Although toys and games specialty retailers struggle to compete on price, their wide assortments within specific sub-categories like video games at GameStop and exclusive LEGO products at Toys“R”Us keep them relevant.

“Today’s always-on, mobile-enabled consumers force retailers to be much more responsive to higher consumer expectations and competitive changes,” says Boomerang Commerce CEO Guru Hariharan. “During this year’s holiday season — where retailer fortunes are won or lost — the toys category is a spectacular example of which retailers are up for the challenge and which fall short. Winners will be those retailers that are high tech and high touch — executing their strategies through a combination of data-driven decisions, ongoing measurement, and operational excellence.”

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, GameStop, 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 2016.

About Boomerang Commerce

Founded in 2012, Boomerang Commerce is a leading retail technology company led by veterans from Amazon and McKinsey. Our Retail Performance Management suite enables retailers to drive profitable growth, streamline operations and realize their merchandising strategy in today’s hyper-competitive, customer-driven world. Our flagship product, Boomerang Pricing Performance Management, rapidly analyzes, tests and deploys smart pricing strategies at scale for products across multiple channels. On average, Boomerang’s customers — including 10 of the top 30 omni-channel retailers like Staples, Office Depot and Lowe's and etailers like Groupon Goods — achieve a double-digit-percentage growth in revenue and margin. 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.

Contacts

BOCA Communications
Brigit Valencia, 360-609-3775
brigit@bocacommunications.com

Contacts

BOCA Communications
Brigit Valencia, 360-609-3775
brigit@bocacommunications.com