Seattle’s online retail giant Amazon has built its reputation on low prices. But now an analyst says Amazon is no longer the thriftiest retailer out there.
Amazon offers more stuff than most big-box retailers, but if you want a food processor or a knife set, Bed Bath & Beyond is now cheaper, according to a new report by Anthony Chukumba, an analyst with BB&T Capital Markets.
Chukumba has been conducting periodic price comparisons on a basket of goods from the two retailers since early 2012.
This was the first time he found that the housewares store was cheaper by 6.5 percent. He says this is a trend; retailers are trying to stave off the Amazon threat.
"You’re seeing more and more retailers compete on price, realizing that Amazon is not going away, and if they’re going to stay relevant, they’ve got to be more competitively priced," Chukumba said.
Chukumba says Amazon may lose even more of its pricing advantage if Congress passes a law requiring online retailers to collect state sales tax.
But he says Amazon still has many things in its favor, like a huge inventory. And he says more and more people want to buy stuff from the convenience of their homes rather than go to brick-and-mortar stores.
