Amazon launches Amazon Saver brand to challenge Walmart and Target

Amazon has introduced a new private-label food brand called Amazon Saver, aimed at helping consumers manage their grocery budgets amid rising costs. This launch follows similar initiatives by competitors, with Target unveiling its cheapest brand, dealworthy, in February, and Walmart introducing bettergoods in April. Amazon Saver is designed as a no-frills option, with most items priced under $5, and will be available both in-store and online. The company plans to expand the product line to include over 100 items. The move to launch Amazon Saver reflects a broader trend among retailers to create lower-priced brands to attract budget-conscious shoppers. Joe Feldman, a managing director at Telsey Advisory Group, noted that the grocery market has experienced increased pricing intensity this year, prompting retailers to invest in private brands that typically offer lower prices and higher profit margins. This strategy aims to enhance customer loyalty and improve the overall shopping experience. As inflation continues to impact household budgets, more Americans are seeking ways to save on groceries, leading to a surge in demand for affordable options. Retailers like Walmart have reported significant growth in private brand sales, indicating a shift in consumer preferences towards these budget-friendly alternatives. Walmart's private brand penetration has increased, demonstrating the effectiveness of this strategy in driving customer engagement. In summary, Amazon's launch of Amazon Saver is a strategic response to the competitive landscape of grocery retail, where affordability and quality are paramount. By offering a range of low-cost products, Amazon aims to capture market share and support customers in navigating the challenges posed by high inflation.