Amazon Australia's pricing 'dynamic but usually cheapest' among retailers, says Citi

Analysts at Citi say the pricing of non-food products by Amazon AMZN.O is "dynamic but usually cheapest" among retail market players in Australia

Says Amazon tends to be at lower price for longer periods of time compared to supermarkets, including Woolworths WOW.AX and Coles COL.AX

Pharmacy retailer Chemist Warehouse, which recently merged with Sigma Healthcare SIG.AX, usually prices either in line with Amazon or between Amazon and the supermarkets — Citi

Brokerage flags non-food products at Coles were 14% more expensive than Amazon on a median basis, which Woolworths priced similar items 13% higher

Citi flags these after reporting season saw continued commentary by WOW and COL on the loss of category share to non-supermarket players such as Amazon, Wesfarmers WES.AX owned-Bunnings and Chemist Warehouse

Brokerage adds that it does not believe the continued loss of share in these categories is sustainable but see room for the supermarkets to stem the bleeding

Keeps Coles as its preferred supermarket given its superior earnings outlook into FY26 and lower multiple