Toy Story: Boomerang Commerce Report Finds Toys “R” Us and Walmart to Be Most Expensive Retailers; Walmart Trails Amazon for Size of Toy Assortment

Everyone guns for Amazon, but each competes differently; Jet competes on price, Walmart via large assortment and Toys “R” Us through deep, broad discounts

MOUNTAIN VIEW, Calif.--()--With the all-important holiday shopping season approaching, Boomerang Commerce undertook a broad analysis of prices, assortment and discounting behavior in the toy category across six major retailers. Data tabulated on 1,200 items spanning 479 brands in the category reflect the challenges of devising an effective strategy against Amazon. The report data suggest mispricing, failure to match Amazon’s assortment of best-selling products and unnecessary discounting practices that could collectively cost the retailers tens of millions of dollars on Black Friday and throughout the holiday shopping season.

The Boomerang Commerce Retail Analytics Report for Toys shows how GameStop, Jet, Target, Toys “R” Us and Walmart struggle to compete, particularly against Amazon. Key findings include:

  • Walmart and Toys “R” Us are the most expensive retailers with prices 7 percent and 10 percent, respectively, higher than Amazon. Target, GameStop and Jet price much closer (all within 3 percent) to Amazon.
  • Walmart comes closest to matching Amazon’s breadth of assortment with 40 percent overlap, while none of the others achieves more than a 35 percent overlap on bestselling items.
  • Jet competes the most closely with Amazon on price, averaging less than 1 percent higher across all toy items and slightly undercutting Amazon on most of the best-selling items.
  • Toys “R” Us competes with Amazon using a strategy that could be described either as two-pronged or bipolar; it has the highest prices of the group, but is notably aggressive on depth and span of discounts, with 32 percent of items discounted at a median of 24 percent off list price.

“With the holiday shopping season approaching, every retailer is under the gun to improve sales and profits and to stock the hottest products – but also to price and discount smarter than their competitors,” explains Guru Hariharan, CEO of Boomerang Commerce. “Boomerang Commerce customers have, by using the proper tools for data-driven decisions, been able to adjust pricing and assortment in carefully defined segments prior to the holiday shopping season to achieve higher revenue and margins.”

The Retail Analytics Report for Toys is the latest in an ongoing monthly series of price, assortment and discounting analyses conducted by Boomerang Commerce. Boomerang’s reports leverage the company’s machine learning and diverse data-capture technologies to provide real-time insights into price, assortment and discount behavior across hundreds of millions of items. These reports provide a window into how omni-channel retailers can leverage Boomerang Commerce’s technologies to master the intricate interplay of competitive pricing, assortment and discounting at scale.

“Think of the Retail Analytics Reports as pointing to the right questions that each merchant needs to ask,” adds CEO Hariharan, “Our solutions for price, assortment optimization and competitor intelligence do the large-scale analysis and hypothesis-based testing to derive specific insights and recommendations that retailers can implement immediately.”

The Boomerang Commerce Retail Analytics Reports and Methodology

Boomerang Commerce Retail Analytics Reports are produced monthly, and each report features a different product category. In this report on toys, Boomerang analyzed 1,200 items across 479 unique brands throughout the online stores of six leading toy retailers: Amazon, GameStop, Jet, Target, Toys “R” Us and Walmart. The analysis is based on best-selling online items, as well as a selected assortment of moderate and less-popular products. More detail and examples for specific products are in the full report from Boomerang Commerce.

About Boomerang Commerce

Seven of Internet Retailer’s Top 50 retailers rely on Boomerang Commerce’s Retail Solutions Suite, which delivers actionable decision recommendations that enable retailers to make smarter pricing, assortment, and competitive decisions to boost profits at scale. Founded in 2012 and built by a team from Amazon, McKinsey, MIT and Stanford, Boomerang applies machine learning and big data analytics to massive data quantities across digital and brick-and-mortar channels, and it derives strategic insights and actionable business recommendations to transform business decision makers into retail ninjas. For more detail, please visit www.boomerangcommerce.com.

All product and company names herein are trademarks of their registered owners.

Contacts

Boomerang Commerce
Corinna Krueger, 510-219-3634
corinna@boomerangcommerce.com
or
BOCA Communications
Brigit Valencia, 360-597-4516
brigit@bocacommunications.com

Contacts

Boomerang Commerce
Corinna Krueger, 510-219-3634
corinna@boomerangcommerce.com
or
BOCA Communications
Brigit Valencia, 360-597-4516
brigit@bocacommunications.com