Amazon Unveils Budget Grocery Line to Rival Major Retailers

Amazon’s latest move in the grocery sector has piqued consumer interest, as the e-commerce giant introduces a new cost-effective grocery brand aimed at competing with Target and Walmart.

At a Glance

Amazon has introduced a new private-label brand called Amazon Saver.
Amazon Saver aims to provide cost-effective grocery options both in-store and online.
Most Amazon Saver products are priced below $5.
Prime members receive an additional 10% discount on Amazon Saver products.

Amazon Saver: A New Player in the Grocery Game

Amazon has launched Amazon Saver, a new private-label grocery brand designed to offer consumers more affordable options. This initiative leverages Amazon’s extensive distribution network and advanced technology to deliver low prices without sacrificing quality. The introduction of Amazon Saver sets the stage for heightened competition with established grocery chains such as Target and Walmart.

The Amazon Saver range includes a variety of grocery items that are mostly priced below $5, making it an attractive option for budget-conscious shoppers. Additionally, Amazon Prime members benefit from an extra 10% discount on these products, further driving consumer interest.

Amazon’s latest strategy to grow its grocery business? The launch of a new own-brand budget-friendly food line called Amazon Saver. I chatted with CNN about the move…https://t.co/5oZgCgCTvU

— Neil Saunders (@NeilRetail) September 10, 2024

Enhancing Value for Shoppers

This new launch is part of Amazon’s broader strategy to enhance value for its shoppers. As Claire Peters, Amazon Fresh worldwide vice-president, put it, “With expanded Prime member savings, the introduction of the new Amazon Saver brand, and simplified online shopping, it’s now easier than ever to get your weekly grocery shopping done on a budget with Amazon Fresh—whether you’re browsing the aisles or filling your online cart.”

The initial rollout of Amazon Saver includes a selection of products, with plans to expand to over 100 items soon. Amazon has also updated its Prime grocery savings program, offering more than 3,000 grocery items with greater savings for Prime members. New features on the Amazon Fresh online storefront, such as themed shopping zones and a streamlined category-based browsing system, make grocery shopping more convenient.

Amazon’s latest strategy to grow its grocery business? The launch of a new own-brand budget-friendly food line called Amazon Saver. I chatted with CNN about the move…https://t.co/5oZgCgCTvU

— Neil Saunders (@NeilRetail) September 10, 2024

Expanding the Amazon Fresh Experience

Beyond the new grocery brand, Amazon is enhancing the Amazon Fresh experience. The company has updated its website interface to streamline navigation and introduce new features like repeat items and recurring reservations. It also offers convenient pickup and delivery options, with free pickup at Amazon Fresh locations and home delivery services available to customers.

The expansion of Amazon Saver and enhanced Prime grocery discounts signal Amazon’s commitment to providing more savings to inflation-weary shoppers. By developing a strong private label portfolio, Amazon continues to carve out a significant presence in both the online and in-store grocery markets. As private label spending is projected to increase to 24% of the total grocery market by 2030, Amazon’s strategic move seems well-timed and targeted.