Amazon Launches Private-Label Brand to Attract Inflation-Stung Shoppers
Amazon.com Inc. launched a private-label brand that offers a range of grocery items largely priced below $5 in a bid to attract inflation-stung shoppers.
Called Amazon Grocery, the offering includes dairy, fresh produce and meat, the company said on Wednesday. The new house brand, which combines the Amazon Fresh and Happy Belly lines, will be available online and at Amazon Fresh stores.
Quality and Affordability
“During a time when consumers are particularly price-conscious, Amazon Grocery delivers more than 1,000 quality grocery items across all categories that don’t compromise on quality or taste — from fresh food items to crave-worthy snacks and pantry essentials — all at low, competitive prices that help customers stretch their grocery budgets further,” grocery division chief Jason Buechel said in a statement.
Private-Label Sales on the Rise
With shoppers trading down amid rising food prices, private-label sales have been a bright spot for US grocers. Walmart Inc. and Kroger Co. both said this year that their in-house product lines gained market share against other brands.
Amazon’s Grocery Business
Amazon has a large online grocery business that sells household staples, paper towels, cleaning products and more. In recent years the Seattle-based company also has expanded into physical stores, an acknowledgment that many shoppers prefer to grab food in person.
In addition to Whole Foods Market, the company operates convenience stores and Amazon Fresh supermarkets that Amazon began opening during the pandemic.
Whole Foods and the 365 House Brand
Whole Foods sells the 365 house brand and recently expanded the line to Singapore in a test of how it will fare in a market where the grocer has no brick-and-mortar presence. Previously the 365 brand had been sold only in the US, Canada and the UK.
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Robin Ajello, Bloomberg News
Conclusion
Amazon’s launch of its private-label brand, Amazon Grocery, is a strategic move to attract price-conscious shoppers who are feeling the pinch of inflation. With over 1,000 quality grocery items available at competitive prices, Amazon aims to provide customers with affordable options without compromising on quality or taste. As the grocery market continues to evolve, it will be interesting to see how Amazon’s private-label brand performs and how it impacts the retail landscape.
Frequently Asked Questions
Q: What is Amazon Grocery?
A: Amazon Grocery is a private-label brand launched by Amazon.com Inc. that offers a range of grocery items largely priced below $5.
Q: What types of products are included in Amazon Grocery?
A: Amazon Grocery includes dairy, fresh produce, meat, and other grocery items such as snacks and pantry essentials.
Q: Where can I find Amazon Grocery products?
A: Amazon Grocery products are available online and at Amazon Fresh stores.
Q: How does Amazon Grocery compare to other private-label brands?
A: Amazon Grocery offers over 1,000 quality grocery items at competitive prices, making it a strong competitor in the private-label market.
Q: Will Amazon Grocery be available in all markets?
A: Initially, Amazon Grocery will be available in the US, but it may expand to other markets in the future.
