Prime Risk:
A Retailer's Guide to Understanding Amazon Prime Members

Over the past several years, as has grown its market share, loyal customer base, and product lineup, it seems that many competing retailers and brands underestimated – or were in complete denial of – Amazon's impact on the retail industry and shifting shopping habits as consumers increasingly became comfortable purchasing online. Amazon is no longer an abstract digital pest for retailers – it's a full-blown disruption to the industry as a whole. Shoppers, who are increasingly becoming Prime converts, LOVE the change, which in turn threatens the livelihood of every other retailer in the industry. As they gravitate toward Amazon in search of products, information, and other digital services, traditional retailers are left to compete for shrinking share of consumers' wallets.

For retailers no longer in denial about the effect Amazon has had on both shoppers and the retail industry, this report is to serve as a guide to understanding Amazon Prime from the point of view of consumers, identifying which retailer shopper groups and formats are most at risk for losing customers to the Amazon vortex.

For this report, Prosper Insights & Analytics analyzed 82 retailer shopper segments (listed below) to determine retailers' Prime Risk among existing core customers from two very important perspectives:

• Overall percentage of Prime members • Rate of Prime membership growth

In order to benchmark retailers' Prime Risk compared to competitors, this report also presents shopper segments' Prime inclinations by the following retail formats:

• Discount/Off-Price • Specialty Hardlines
• Department Stores • Warehouse Clubs
• Grocery/Supermarkets • Drug Stores
• Specialty Apparel/Beauty/Footwear