Retail Intelligence: Amazon Entertainment Market Share Up 3.1%

Amazon achieved a record market share of 23.4 per cent in the 12 weeks to December 23, an increase of 3.1 per cent on the previous year. According to the Kantar Worldpanel Entertainment Retailer Barometer, failed entertainment retailer HMV managed to increase its market share to 17.5 per cent for the quarter, up 0.2 per cent on the same period in 2011.

Of the UK's leading grocers, Walmart-owned Asda grew its market share to 10.4 per cent, an increase of 0.8 per cent on the previous year. Rivals Tesco and Sainsbury's saw their market share fall by 0.9 per cent to 12.2 per cent and 0.1 per cent to 6.2 per cent respectively. Game, iTunes and Play.com all saw their market share fall for the 12-week period, compared to a year earlier.

“Christmas resulted in an all-time record share for Amazon," said Fiona Keenan, consumer insights director at Kantar. The online retailer experienced its most notable performance in CD sales. Commenting on the demise of HMV, she said, "“HMV shoppers are more likely to shop in physical stores, leaving the likes of Game and the grocers in a good position if HMV leaves the high street – particularly if they react quickly." However, she experienced doubts as to whether online retailers could tap into the impulse buying experienced at the retailer's high street stores. "Last year, HMV music customers spent £61 million on CDs picked up while browsing. Generating sales in this way remains a challenge for online retailers.”

Kantar Worldpanel Entertainment Retail Barometer (percentage spending) for the quarter was as follows:

 

  12 weeks to Dec 25, 12   % change from previous year
Amazon 23.4   3.1
HMV 17.5   0.2
Tesco 12.2   -0.9
Asda 10.4   0.8
Sainsbury’s 6.2   -0.1
Game 6.1   -3.4
iTunes 4.6   1.5
Play 3.2   -1.2
Morrisons 2.9   -0.3

© 2013 Profitero

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