Amazon the Conqueror How close is Amazon to over-taking established brick-and-mortar retailers? It’s no secret that Amazon has plans to capture more of consumer spend. From the Whole Foods acquisition to Amazon Go store openings and ever-increasing Amazon-owned private labels, there seems to be boundless potential for this retail giant. Read on to learn more about Amazon’s standing in relation to Walmart, Costco and Target, including share of wallet, trip circuits and what the future might hold for the internet warrior. Amazon is #2 in share of Omnichannel shopper spend, rivaled only by Walmart Amazon already has a stronghold on the Omnichannel Shopper, even without a strong brick-and-mortar presence like other top competitors. % of all shopper spend 13.0% 7.8% 3.7% 3.4% Source: Numerator Shopper Proile Report; Latest 52 Weeks through 2018.11.04; Omnichannel static group Amazon pricing at Whole Foods cuts into Walmart & Target’s share of wallet Lower prices at Whole Foods enticed some Prime members to switch from competitors to the organic grocer. In the months following the price cuts, Prime Members New-to-Whole Foods spent less at Target and Walmart. Change in Share of Wallet -0.6% -0.4% Walmart Target Source: Numerator Panel Analysis: July 2018; Prime Members new to Whole Foods, n=652; Omnichannel Static Panel. Post-Price Drop Period between 09-01-2017 and 06-30-2018 Rising in rank: Amazon’s share of Health & Beauty, Toys, Baby and Household While all other top retailers show sales declines in one or more of these categories, Amazon is growing across the board. 2016 - 2017 2017 - 2018 Health Household Baby Toys and Beauty 6.4% 7.3% 15.0% 16.4% 20.8% 22.3% 33.6% 35.9% 25.9% 26.2% 24.9% 25.4% 23.6% 25.8% 29.9% 28.3% 8.9% 8.2% 9.2% 8.8% 18.9% 18.9% 18.6% 17.8% 8.8% 9.5% 4.9% 5.2% 3.8% 3.9% 0.4% 0.4% Source: Numerator Share Explorer Report. Share of dollars spent within sector Nov 7, 2016 to Nov 5, 2017 compared to Nov 6, 2017 to Nov 4, 2018 Amazon iniltrates the trip circuit One third of weekly circuits that include Walmart, Target or Costco are likely to include a trip to Amazon. Share of weekly 32.1% circuits including 16.7% 7.0% 44.7% Share of weekly 38.8% circuits including 12.6% 40.0% 41.7% Share of weekly circuits including 28.3% Source: Numerator Trip Circuits Report; Latest 52 Weeks through 2018.11.04. Based on weekly trip circuits (Mon-Sun) where any product is purchased. Overtaking competitors through heavy ad spend Staying top-of-mind is critical in the battle for customers. Amazon outspends competitors on paid media overall, and spends more on mobile ads than Walmart and Target combined. Total Paid Media Paid Media, by Spend Type $323 $211 $350 $1.471 Billion in combined, measured, paid media $212 TV Mobile Online Display Other Source: Spending as estimated by Numerator 10.1.16 - 9.30.2017; total excludes search So... how big can Amazon grow? We surveyed Amazon shoppers to see how willing they are to purchase additional products and services from Amazon. Amazon can conquer new areas, including services. Our respondents have interest in Amazon services, including some currently offered by Costco and Walmart. Which Potential Amazon Services would interest you? Amazon Airline 37% Amazon Tickets 35% 54% of Amazon shoppers surveyed welcome more Amazon Rides (e.g. Uber, Lift...) 32% Amazon offerings. Amazon Auto/Home Insurance 27% Amazon Cruise Line 27% Amazon Savings/Checking 24% Source: Numerator Survey, n=1951 Amazon Shoppers Winning the battle for an “All-Amazon” world The majority of surveyed Amazon shoppers could quickly switch to an “All-Amazon” world within months. How long would it take to switch your product/service purchases to a single supplier? 32.6% 22.5% 21.4% Within 1 Month 1-3 Months 4-6 Months Source: Numerator Survey, n=1951 Amazon Shoppers Find out how Amazon has affected your shoppers: • Get real-time Amazon purchase data • Send trigger-based surveys to veriied Amazon shoppers • Understand lapsed shopper behavior • Understand full basket composition when your brand is (and isn’t!) included • Measure promotion effectiveness Contact: [email protected].