1. Presented by: Anne Zybowski, Vice President, Retail Insights Nicole Santosuosso, Junior Analyst November 2014 Annual Shopper Review: Amazon

2. © Copyright 2014 Kantar Retail Copyright © 2014 Kantar Retail. All Rights Reserved. 501 Boylston Street, Suite 6101, Boston, MA 02116 (617) 912- 2828 howard.zimmerman@kantarretail.com No part of this material may be reproduced or transmitted in any form or by any means, electronic or mechanical, including photography, recording, or any information storage and retrieval system now known or to be invented, without the express written permission of Kantar Retail. The printing of any copies for back up is also strictly prohibited. Disclaimers The analyses and conclusions presented in this seminar represent the opinions of Kantar Retail. The views expressed do not necessarily reflect the views of the management of the retailer(s) under discussion. This seminar is not endorsed or otherwise supported by the management of any of the companies covered during the course of the workshop or within the following slides.

3. © Copyright 2014 Kantar Retail Amazon 2014 Shopper Review Amazon’s shopper base continues to accelerate amidst a competitive landscape where other retailers are facing flat to declining penetration. With its growing assortment and content ecosystem, Amazon continues to drive growth by capturing new shoppers—and converting more shoppers into loyal shoppers. As such, Amazon is driving its overall shopper base AND shopper frequency. The retailer leads as the most frequently shopped retailer across top online competitors; it is approaching Walmart’s level of overall retailer penetration. Amazon’s core shopper base is predominantly families. Amazon shoppers tend to be higher-income households with children younger than 12 years old. Leading shopping frequency are Gen X and Gen Y, indicative of the retailer’s continued efforts to engage with these younger shoppers through its various life stage programs such as Amazon Mom, Amazon Student, and Subscribe & Save. From an economic standpoint, Amazon shoppers tend to be more positive about their overall financial health. Amazon shoppers are “smart” shoppers who enjoy feeling like they got a “good deal,” and prioritize the “functional” aspects of the shopping trip such as having a stress-free experience and access to high-quality products and information. Executive Summary Source: Kantar Retail analysis 3

4. © Copyright 2014 Kantar Retail Amazon 2014 Shopper Review Competition beware: the extensive growth of Amazon’s shopper base has contributed to its acceleration as one of the most cross-shopped retailers, particularly among department store, mass, and specialty retailer shoppers. As Amazon enhances its offer in “new” categories such as beauty, apparel, and consumables, more retailers will be at risk. Amazon has continued to grow its brand reputation as a trusted and reliable source of not just products, but also of information. This is especially true during the holidays, as shoppers frequently look to Amazon for gift ideas, product reviews, and to compare prices. Amazon's efforts were especially evident last holiday season, as the retailer topped Walmart as the number one destination for holiday shopping. Crucial to Amazon’s overall shopper value proposition are its membership and lifestyle programs, most notably Amazon Prime. Prime penetration has continued to accelerate at a rapid speed, and has caused significant impact to overall shopping behaviors. While the program began as free two-day shipping to remove barriers to purchase and accelerate topline growth, digital content and the evolving ecosystem moves a Prime membership beyond a transactional relationship to drive “share of life” with Amazon’s most loyal shoppers. Executive Summary Source: Kantar Retail analysis 4

5. © Copyright 2014 Kantar Retail Agenda Shopper Penetration and Profile –Channel Penetration –Shopper Profile Shopper Motivations –Spending Intentions –Spending Priorities –Motives to Visit Shopping Behaviors –Where Else Amazon Shoppers Shop –Trips & Trip Types Brand Perception –Amazon as a “Trusted Brand” –Loyalty & Prime Capture Rates Growth Platforms –Life Stage Programs –Prime Impact 5

6. © Copyright 2014 Kantar Retail Data Source: About the ShopperScape ® Survey 6 4,000 primary household shoppers per month Representative sample of ~50,000 unique primary household U.S. shoppers annually; 80:20 female:male ratio Fielded online the third week of every month Survey fielded through LSR access panel Monthly and quarterly tracking questions on retailers and venues shopped, products purchased, where spend the most, near-term spending outlook, and household financial health New questions each month on timely, topical, and seasonal issues (including key holiday periods) affecting shopping behavior 200+ retailers across all sectors of retail – a complete picture 81+ category groups (e.g., candy/gum, non- carbonated beverages; not specific categories) 7 major departments (e.g., food/groceries) Who & When? How? What? Coverage

7. © Copyright 2014 Kantar Retail Shopper Penetration 7

8. © Copyright 2014 Kantar Retail Shopper Penetration and Profile 8 Source: Kantar Retail analysis Amazon’s shopper base continues to accelerate. Not only is Amazon gaining new shoppers, but shopping frequency is accelerating as well. As of August 2014, 59% of all Amazon shoppers report shopping the retailer on a regular basis, at least once a month. Amazon’s shoppers are families. Amazon shoppers largely comprise higher- income households with children younger than 12. From a generational perspective, Amazon shopping is driven by Gen X and Gen Y; in particular, Gen Y leads overall in shopping frequency and has grown in share of shoppers over the past five years. This is indicative of the retailer’s continued investment in the programs with strong life stage appeals such as Subscribe & Save, Amazon Mom, and Amazon Student. Subscribe & Save has particular appeal to the down-market shopper. Amazon leads in shopping frequency. Amazon leads as the most frequently shopped retailer across Amazon-owned sites and select online competitors including Walmart.com, Target.com, and eBay. Amazon’s weekly shoppers are more than double that of Walmart.com, and triple Target.com.

9. © Copyright 2014 Kantar Retail Amazon Shoppers Are Increasingly Families Female, Gen X/Y; Higher-income HHs w/ kids younger than 12 … but don’t count out the down-market shopper appeals Source: Kantar Retail ShopperScape ®, December 2013 9 Note: Shading indicates significantly greater percentage, compared with all shoppers; border indicates significantly lower percentage (95% confidence level). GEN Y/X UP MARKET HISPANIC HHS W/KIDS Amazon Shoppers are more likely to be … SNS appeal to down market shopper

10. © Copyright 2014 Kantar Retail Amazon Growth in New Shoppers Continues As shopper bases contract at competitors, Amazon approaches Walmart-level penetration Source: Kantar Retail ShopperScape ®, August 2007–August 2014 10 * Inclusive of visits to stores/websites and use of catalogs Past 4-Week Shoppers, by Retailers* (among all primary household shoppers) Past 4-Week Shoppers, by Retailers* (among all primary household shoppers)

11. © Copyright 2014 Kantar Retail Not Just New … More “Loyal” Shoppers Trial (especially holiday) leads to habit, habit to loyalty Source: Kantar Retail ShopperScape®, December 2007–August 2014 11 December = Highest traffic month, but convert to monthly 50.1% Amazon's "Loyalty" Index (% of Past 4 Week Shoppers that Are Monthly Shoppers) Amazon's "Loyalty" Index (% of Past 4 Week Shoppers that Are Monthly Shoppers)

12. © Copyright 2014 Kantar Retail Amazon Winning Younger Shoppers 12 Disproportionately draws youngers shoppers, and they shop (a lot) more often, with 28% of Gen Y shopping weekly Amazon Monthly Shoppers All Amazon Shoppers Source: Kantar Retail ShopperScape ®, January–December 2009 and 2013 (left) and July 2014 (right) 76% 85% 82% 73% 59% Total Shopping Incidence Amazon Shopping Frequency, by Generation Amazon Shopping Frequency, by Generation Shopper Profile, by Generation

13. © Copyright 2014 Kantar Retail Amazon Leads as Most Frequently Shopped Nearly 20% of Amazon shoppers are weekly Source: Kantar Retail ShopperScape ®, July 2014 13 76% Total Shopping Incidence 52% 45% 40% 19% 6% *Any of diapers.com, soap.com, casa.com, or yoyo.com Shopping Frequency: Amazon, Amazon-Owned Sites, and Select Online Competitors Shopping Frequency: Amazon, Amazon-Owned Sites, and Select Online Competitors

14. © Copyright 2014 Kantar Retail Gen X & Y Driving Shopper Base Growth Gen X approaching Gen Y in terms of weekly shopping; Boomers now less likely to shop weekly, but still shopping at same incidence Source: Kantar Retail ShopperScape ®, July 2013 and July 2014 14 BOOMERSSENIORSALL SHOPPERSGEN XGEN Y 76% 81% 85% 80% 82% 74% 68% 59% Amazon Shopping Frequency, by Generation: 2014 vs. 2013 Total Shopping Incidence

15. © Copyright 2014 Kantar Retail Shopper Motivations 15

16. © Copyright 2014 Kantar Retail Spending behaviors of Amazon “smart” shoppers continue to evolve as they look for a “good deal.” Overall, Amazon shoppers prioritize the “functional” aspects of shopping and having a stress-free shopping experience. Amazon shoppers feel good about financial health. From job security to credit card debt, Amazon shoppers feel more confident about their financial well being and overall ability to spend. This is a clear opportunity for Amazon as its shoppers are more likely to plan on spend more vs. last year. This coincides with the Amazon shopper’s mentality of “getting a good deal,” which they prioritize over spending as little money as possible. Amazon shoppers are motivated by “smart” shopping. Amazon shoppers value “smart” shopping, such as purchasing high-quality products and getting information about new products and brands. Amazon shoppers also enjoy the functional aspects of the trip, such as saving time by getting all their shopping done as quickly as possible, and getting everything they need in one place. Shopper Motivations 16 Source: Kantar Retail analysis

17. © Copyright 2014 Kantar Retail More Positive About Financial Health Driven by strong up-market shopper base Source: Kantar Retail ShopperScape ®, January–June 2014 17 Household Financial Health vs. Same Time Last Year: Amazon Shoppers vs. All Shoppers, January–June 2014 Note: Shading indicates significant difference between columns (90% confidence level).

18. © Copyright 2014 Kantar Retail Stronger Spending Sentiment 18 Opportunity for Amazon to capture bigger share of wallet Note: arrows indicate significant difference from all shoppers (95% confidence level) Source: Kantar Retail ShopperScape ®, January–June 2014 Near-Term Spending Plans: Percent Planning to Spend More/About the Same vs. Same Time Last Year (three-month moving average) Near-Term Spending Plans: Percent Planning to Spend More/About the Same vs. Same Time Last Year (three-month moving average) Near-Term Spending Plans vs. Same Time Last Year, January–June 2014 (three-month moving average) Near-Term Spending Plans vs. Same Time Last Year, January–June 2014 (three-month moving average)

19. © Copyright 2014 Kantar Retail Amazon Shoppers Are “Smart” Shoppers Prioritize getting a “good deal” over minimizing spending…. Also, purchasing high quality products, having stress-free shopping experience Source: Kantar Retail ShopperScape ®, January- September 2014 19 Note: Box indicates Amazon shoppers as significantly higher than all shoppers; Arrow indicates significantly lower(95% confidence level) What’s Important When Shopping? (Percent of shoppers ranking factor as one of top four most-important factors while shopping) What’s Important When Shopping? (Percent of shoppers ranking factor as one of top four most-important factors while shopping)

20. © Copyright 2014 Kantar Retail Tale of 3 Shoppers: AMZ = The “Smart” Shopper WMT = minimize spend; TGT = feel good about the deal Source: Kantar Retail ShopperScape ®, January- September 2014 20 WMT TGT AMZ WMT What’s Important When Shopping? (Percent of shoppers ranking factor as one of top four most-important factors while shopping) What’s Important When Shopping? (Percent of shoppers ranking factor as one of top four most-important factors while shopping) AMZ

21. © Copyright 2014 Kantar Retail Amazon Shoppers Place Premium on Functional Aspects of Shopping; Emotion also Over-Indexes Shopper Type Top Priority When Shopping All Shoppers Monthly Amazon Shoppers Value/ Money Feeling like I got a “good deal” Spending as little as possible 48%45% Function/ Experience Having stress-free experience Purchasing high-quality products Having access to info about products/brands 22%26% Time Completing shopping as quickly as possible Doing all/most shopping in one place 20%18% Emotion Having fun/enjoying myself Supporting retailers/brands that reflect my values Interacting with helpful, friendly employees Discovering new products/brands 10%11% Source: Kantar Retail ShopperScape ®,,, January–September 2014 21 Note: Shading indicate significant difference between columns (95% confidence level) “Shopper DNA”: What Matters Most to Amazon Shoppers

22. © Copyright 2014 Kantar Retail Shopper Behaviors 22

23. © Copyright 2014 Kantar Retail As Amazon continues to grow, its disruption to the retail landscape is intensifying. Cross-shopping at Amazon is accelerating across all channels, including mass, club, drug, category specialists, department stores, value discounters, and supermarkets. Cross-shopping at Amazon is accelerating. Amazon cross-shopping is growing at a rapid pace. Walmart and Target each share more than half their shopper base with Amazon, with several other retailers also vulnerable. As Amazon adds to its “everything store” and vast selection, category specialists are most at risk. As Amazon continues to build out their “newer” categories like grocery, apparel, and consumables, cross-shopping will continue to accelerate in those channels. Amazon captures CE spending. As a leader in general merchandise, Amazon continues to capture more spending from its shoppers in consumer electronics and media categories. In 2013, 27% of shoppers started their search for their last CE purchase at Amazon. Gen Y in particular is especially reliant on Amazon for CE, with 48% of Gen Y shoppers shopping using Amazon as a CE destination. Apparel retailers are vulnerable to Amazon. Amazon now has the second-largest regular apparel shopper base. Only Kohl’s has a larger total shopper base, but Amazon’s monthly shopper exceeds Kohl’s and tops all other retailers. Many fashion retailers are vulnerable to Amazon as they share a significant proportion of their shoppers with Amazon. Shopper Behaviors 23 Source: Kantar Retail analysis

24. © Copyright 2014 Kantar Retail Cross-Shopping at Amazon Is Accelerating 24 Source: Kantar Retail ShopperScape ®, January –December 2007, 2012, and 2013 All shoppers more likely to be shopping Stealing shoppers from all types of competition, with highest amongst specialty players and department stores Mass Club Drug Cat. Specialists Dept. Stores Supermarkets Value Mass Club Drug Cat. Specialists Dept. Stores Supermarkets Value

25. © Copyright 2014 Kantar Retail Amazon Most Likely to Capture Spending from Its Shoppers in Media and CE Categories 25 Source: Kantar Retail ShopperScape ®,,, July 2013–June 2014 “Capture Rate”: Percent of Amazon Shoppers Who Report Spending the Most on Category at Amazon “Capture Rate”: Percent of Amazon Shoppers Who Report Spending the Most on Category at Amazon

26. © Copyright 2014 Kantar Retail Top 6 “Everyday” Purchases on Amazon (during past 6 months, among All vs. Prime shoppers) Top 6 “Everyday” Purchases on Amazon (during past 6 months, among All vs. Prime shoppers) Top 5 Gift Purchases on Amazon (among all holiday gift shoppers who shopped Amazon.com) Top 5 Gift Purchases on Amazon (among all holiday gift shoppers who shopped Amazon.com) Amazon Driving Conversion to New Categories Source: Kantar Retail ShopperScape ®, December 2013 and July 2014; Company website Top shopped categories at Amazon 26 12345

27. © Copyright 2014 Kantar Retail Amazon Attracting Shoppers in Core Gen Merch Categories: CE and Apparel 27 All Shoppers Gen Y Shoppers All Shoppers Gen Y Shoppers 48% 58% 54% 65% Source: Kantar Retail ShopperScape ®,,, January 2014 (left) and March 2014 (right) Percent of Shoppers Who Started Search for Last CE Purchase at Amazon: 2013: 27% 2014: 32% Have Shopped Amazon in Past Year for Consumer Electronics Have Shopped Amazon in Past Year for Consumer Electronics Shop Amazon at Least Once a Year for Apparel Shop Amazon at Least Once a Year for Apparel

28. © Copyright 2014 Kantar Retail Fashion Retailers Vulnerable to Amazon Amazon’s total apparel shopper base lags that of Kohl’s or JCPenney, but the retailer draws more apparel shoppers on a monthly basis. Many fashion retailers share a significant portion of their shoppers with Amazon. Source: Kantar Retail ShopperScape ®,, March 2014 28 Note: Blue bars indicate significantly higher difference than all shoppers (95% CL) Total Shopping Incidence 62% 67% 64% 53% 44% 46% 40% 29% 22% Shopping Frequency at Retailer for Clothes, Shoes, or Accessories Retailer’s Monthly Shoppers Who Shop at Amazon Once a Month or More for Clothes, Shoes, or Accessories

29. © Copyright 2014 Kantar Retail Brand Position 29

30. © Copyright 2014 Kantar Retail Brand Position: Amazon Is Key Trusted Source 30 Source: Kantar Retail analysis As the world’s most “customer-centric” retailer, Amazon’s mission is focused on innovating on behalf of the shopper. As its platform has evolved, Amazon has built a reputation as not just a purchase-destination, but as a trusted source of information for shoppers. From a search perspective at holiday, Amazon is a key resource for shoppers looking for product reviews, gift ideas, and price comparisons. Amazon is a trusted brand and shopping destination. Amazon has established its brand with shoppers based on its vast assortment and product information. As a leader in search, Amazon has become a destination for not just purchasing, but pre-purchase research, from product reviews to gift ideas. In fact, during the 2013 holiday season 46% of shoppers compared prices on Amazon, while 34% read product reviews. Boomers especially leveraged Amazon’s wish lists as part of their 2013 holiday shopping. Amazon Prime drives overall shopping behavior. Amazon Prime has been a key driver of Amazon’s overall value proposition with its promise of free two-day delivery on more than 30 million eligible items. As of December 2013, nearly one in five households, or 21.5 million shoppers, were members of Prime (or one in four households among Gen X and Y)—indicative of the program’s growing importance to driving loyalty with the Amazon shopper that encompasses the overall ecosystem, and goes well beyond transactions.

31. © Copyright 2014 Kantar Retail What Resonates With Connected Shopper? Amazon Prime is best-in-class: expanding into lives > retail Source: Kantar Retail analysis, Company website 31 + Paid membership loyalty program grounded in “all-you-can-ship”

32. © Copyright 2014 Kantar Retail At the Core Is the Prime Member Relationship Resonating across generations; ~One in Five U.S. Households Source: Kantar Retail ShopperScape ®, December 2011, 2012, 2013 32 Membership Note: arrows indicate significant difference vs. all shoppers (90% confidence level) Dec 2013 24% 17% 10% 19% Dec 2011Dec 2012 Gen Y17% Gen X14%18% Boomers7%13% Seniors5%7% All10%14% Penetration of Amazon Prime Membership (among all U.S, primary household shoppers) Penetration of Amazon Prime Membership (among all U.S, primary household shoppers) Estimated members: 21.5M

33. © Copyright 2014 Kantar Retail Membership Changes Behavior Driving engagement & conversion Source: Kantar Retail ShopperScape®, July 2014 33 All Primary HH Shoppers 9.6% 56%5.7% Monthly Amazon Shoppers 16.3% 55%9.6% Amazon Prime Shoppers 15.8% 60%9.9% 1.7x AVERAGE RATE ACROSS ALL CATEGORIES

34. © Copyright 2014 Kantar Retail Top Retailers Shopped for Holiday Gifts Amazon Became Top Holiday Destination While most other retailer lose share of holiday shoppers Source: Kantar Retail ShopperScape ®, December 2011, December 2012 and December 2013 34 Note; Arrows indicate significant decline vs. holiday 2012 (95% confidence level)

35. © Copyright 2014 Kantar Retail Amazon: Established Role in Holiday Routines 35 More than a purchase destination Source: Kantar Retail ShopperScape ®, December 2012, December 2013 How Shoppers Used Amazon as Part of Holiday Shopping (top non-purchase uses) How Shoppers Used Amazon as Part of Holiday Shopping (top non-purchase uses) Note: Shading indicates significant difference vs. All Amazon Holiday Gift Shoppers (90% confidence level); Holiday 2012 Holiday 2013 Compared prices48%46% Searched for gift ideas37% Read product reviews38%34% RESEARCH products not purchased on Amazon.com 23%22% Purchased items from someone's Wish List16% Viewed Lightning Deals/Deal of the Day16%14%

36. © Copyright 2014 Kantar Retail Prime Tenure Influences Holiday Use Broad Amazon usage ingrained into routines Source: Kantar Retail ShopperScape ®, December 2013 36 Note: Shading indicates significant difference between columns (90% confidence level) vs.

37. © Copyright 2014 Kantar Retail How Shoppers Used Amazon as Part of Holiday Shopping, by Generation Indexed to all Shoppers Gen X Most Actively Using Site Across Board From “assurance” to deals; Boomers & Seniors leverage wish lists—key trial, entry into the ecosystem 37 100 Index = Average of all shoppers Source: Kantar Retail ShopperScape ®, December 2013

38. © Copyright 2014 Kantar Retail Trial & Purchase Experience Lends Itself to Habit Particularly in a 1-click environment Source: Kantar Retail ShopperScape ®, December 2013 38 “Purchased items [on Amazon] from someone’s Wish List ” % of Seniors More purposeful shoppers % of Boomers

39. © Copyright 2014 Kantar Retail Growth Platforms 39

40. © Copyright 2014 Kantar Retail Amazon Prime has helped to accelerate growth with its shoppers. This membership program has moved beyond removing a key barrier to online purchasing to becoming a much broader value-add program when combined with its content ecosystem. Variations on the program tailored to various life stages, Amazon Mom and Amazon Student, helps accelerate membership with core audiences and drive “share of life” with its members. Life stage programs drive loyalty. Amazon leverages its membership programs to cultivate a loyal shopper base. The Mom, Subscribe & Save, and Student programs are designed to provide relevant offers for shoppers in various life stages, and ultimately feed shoppers into the Prime program. These life stages are critical opportunities when shoppers are more open to establishing new shopping routines. Amazon Prime is the backbone of the Amazon value proposition. The remarkable growth of Prime to an estimated 20.5 million members is indicative of the growing importance of the program to the Amazon ecosystem. Prime is a key driver of cross-shopping on Amazon and significantly changes the shopping patterns of its members. In 2013, 30% of Prime members shopped retail stores less often and nearly half of all members check Amazon first before anywhere else. On a loyalty basis, content users tend to be the most loyal Prime shoppers. These shoppers are likely to renew for the exclusive digital content available with the program. Growth Platforms: Amazon Prime at the Core 40 Source: Kantar Retail analysis

41. © Copyright 2014 Kantar Retail Memberships Are Customer Focus in Action 41 Source: Company websites, Kantar Retail analysis Amazon leverages its membership programs to cultivate a loyal shopper base. The Mom, Subscribe & Save, and Student programs are designed to feed shoppers into the Prime program.

42. © Copyright 2014 Kantar Retail Free Shipping Is Key Trigger … Evolves into entertainment/“share of life”—connected places Source: Kantar Retail ShopperScape®, December 2013 42 *Among Prime members who plan to renew, % who say factor is “very important” in their decision to renew Reason for Signing Up for Amazon Prime vs. Renewing Prime Membership (among all primary household shoppers)

43. © Copyright 2014 Kantar Retail “Content Members” Likely to Be Most Loyal Shoppers who join to get life stage–based discounts appear to have narrower view of Amazon benefits Source: Kantar Retail ShopperScape®, December 2013 43 Likelihood to Renew, by Primary Reason for Joining

44. © Copyright 2014 Kantar Retail Membership Mentality Changes Shopping Patterns Amazon-first mentality … turns trial into habit Source: Kantar Retail ShopperScape®, December 2013 44 of Prime members report NO changes in shopping patterns Only How Prime Membership Changes Shopping Patterns (among all Prime Members)

45. © Copyright 2014 Kantar Retail Significant Changes to Shopping Routines Longest Prime members make most wholesale changes Source: Kantar Retail ShopperScape®, December 2013 45 The “Tenure Effect”: How Shopping Has Changed as Result of Being Prime Member From the beginning: Amazon is top of shopping list and visits to other stores takes a hit … then effect is magnified with tenure 3 or more years

46. © Copyright 2014 Kantar Retail Prime Effect: Retailers Most Likely to Be Impacted As Amazon ecosystem drains share of life and wallet Source: Kantar Retail ShopperScape ®, December 2013 46 Amazon Membership Incidence by Monthly Retailer Shoppers

47. © Copyright 2014 Kantar Retail What Retailers Affected? In Shoppers’ Own Words Source: Kantar Retail analysis and ShopperScape®, December 2013 47 Note: Size of text represents relative frequency of mention in response to open-ended question above What retail stores or online shopping sites have you stopped shopping or shop less since you’ve had an Amazon Prime membership? One in five Prime shoppers who have reduced shopping at other retailers cite Walmart as a retailer they are shopping less often because of Prime

48. © Copyright 2014 Kantar Retail True Loyalty Beyond the Shopping Experience Changes Frame of Reference for the Competition Source: Kantar Retail analysis and ShopperScape®, December 2013 48 I have spent considerably less at Walmart, because sometimes Amazon has the best price plus the free 2 day shipping with prime, makes it a better option. I would say I go to Walmart less often now that I have Amazon Prime membership. It is just more convenient to shop at Amazon.com. Target every few weeks instead of every week. Costco once a month instead of twice.

49. © Copyright 2014 Kantar Retail 501 Boylston Street Suite 6101 Boston, MA 02116 www.KantarRetailiq.com 501 Boylston Street Suite 6101 Boston, MA 02116 www.KantarRetailiq.com Anne Zybowski Vice President, Retail Insights anne.zybowski@kantarretail.com T +1 617 912 2856 Nicole Santosuosso Junior Analyst nicole.santosuosso@kantarretail.com T +1 617.912.2857