AMAZON has launched a new private label brand of food and household items which will help you stick to your budget.
The new program, named Amazon Grocery, will merge items previously sold as Amazon Fresh or Happy Belly, all under one name.
Some of the new products include refrigerated pizza dough, bottled water, fresh cinnamon rolls and lemonade[/caption]
It will feature more than 1,000 new items including milk, olive oil, meat and seafood with many products under $5.
The move is being seen as a way for the e-commerce giant to take on Trader Joe’s and Aldi, which are both widely known for their own branded products.
Sky Canaves, principal analyst for retail firm eMarketer, told USA Today that the move fits into “this trend of retailers wanting to put their names front and center on their private label brands, because it can help build more brand affinity and more customer loyalty”.
Aldi recently announced a plan to put its name on nearly every product, while Walmart has also released its own private food labelled brand.
Costco’s own Kirkland Signature is so beloved, that super fans have even reported getting the brand tattooed on them in dedication.
Recent research from NielsenIQ found that 31% of 1,005 consumers surveyed in June this year said they were switching to private label products.
CHEAPER OPTIONS
Experts say shoppers are turning to private labels in a bid to save money, with items often as much as 20% cheaper than branded products.
“When you are in a store and making that decision, seeing the much lower price can certainly generate a change in purchases and I think online that works as well,” Canaves told USA Today.
Private label groceries are very popular overseas in places like the UK and Germany.
For example, more than half of all grocery sales at huge foreign chains like Tesco, Sainsbury’s and Aldi are store brands.
In the US, this figure is much smaller and sales are dominated by large corporations like Kellogg’s and Kraft brands.
‘CRAVE-WORTHY’
Announcing the move, Amazon vice president of worldwide grocery Jason Buechel said the new brand would help shoppers save money whilst not “compromising on taste”.
During a time when consumers are particularly price-conscious, Amazon Grocery delivers more than 1,000 quality items across all categories that don’t compromise on quality or taste
Jason Buechel
“From fresh food items to crave-worthy snacks and pantry essentials — all at low, competitive prices that help customers stretch their grocery budgets further.”
Some of the new products include refrigerated pizza dough, bottled water, fresh cinnamon rolls and lemonade.
The new products will also be available to order online, as the e-commerce giant seeks to expand its same day delivery services of fresh products to more parts of the US.
AMAZON SAVER
It’s not the first time Amazon launched a budget friendly grocery brand.
Last September, Amazon launched Amazon Saver, which was “focused on value”.
Amazon’s fresh offerings have struggled in recent years, with the brand confirming multiple closures of its locations selling perishable goods.
For example, two Amazon Fresh closures were announced in March this year, just three years after the stores first opened. The stores were located in Thousand Oaks, California and Masassas, Virginia.
At the time, an Amazon spokesperson said the decision followed “an assessment of our offering”.
More than 150 employees were affected by the closures.
