Amazon launches budget groceries to compete with Aldi

Amazon is launching a new private label brand called Amazon Saver, aimed at providing budget-friendly grocery options to price-conscious consumers. This initiative comes as many shoppers are shifting away from name brands in search of better value due to rising grocery prices, which have increased by 20% to 30% over the past few years. The Saver brand will feature a variety of household staples and perishable items, with most products priced under $5. More than a hundred additional items are expected to be introduced in the coming months. The company already has several private label brands, including Amazon Fresh and Happy Belly, but Saver is positioned as the lowest-priced option. This move is part of Amazon's strategy to compete with established retailers like Walmart, Target, and Aldi, which have successfully attracted customers with their own affordable private label offerings. Retail analysts emphasize the importance of maintaining reasonable quality in these products, as consumers are looking for good quality at low prices. In addition to the new product line, Amazon is enhancing grocery discounts for its Prime members, who will now receive up to 50% off select grocery items each week, including fresh produce and meats. This is an increase from the typical 10% discount that Prime members usually enjoy. The additional 10% off on Saver products further incentivizes membership and aims to retain customers amid ongoing inflationary pressures. Overall, this initiative reflects Amazon's ambition to strengthen its position in the grocery market and respond to changing consumer behaviors driven by economic challenges.