NEW YORK聽鈥 Amazon is taking a page out of Aldi and Target鈥檚 playbook and launching a new line of budget-friendly food items in an attempt to attract price-conscious shoppers who are ditching name brands to save money.
Amazon is rolling out a new 鈥渘o-frills鈥 private label brand called , with most items priced at less than $5 and that include an array of household staples and pantry items such as cookies and crackers and perishable items like sliced turkey and ham. More than a hundred additional items will be revealed in the coming months.
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The company has several private label food brands, including Amazon Fresh, 365 and Happy Belly, but Saver is the company鈥檚 lowest priced brand, which 鈥渃omplements the company鈥檚 selection of private label brands designed to provide the best value for a range of grocery products,鈥 Amazon said in a statement.
Amazon is also taking aim at its rivals, including Walmart, and , all of which have cheaply priced private label brands that are popular with customers, as retailers look to retain shoppers despite stubbornly .
A few years of high inflation has forced customers to reevaluate their spending habits and made them prioritize value, especially in grocery shopping, since many similar items are sold at different prices depending on the brand.
鈥淎mazon still has big ambitions in grocery, so it needs to jump on this bandwagon as well as sharpen its value for money position,鈥 said Neil Saunders, retail analyst and managing director at GlobalData Retail. 鈥淪aver products will help the business to accomplish this as it provides stronger opening price points.鈥
Saunders told CNN that it鈥檚 vital that Saver has 鈥渞easonable quality,鈥 because shoppers 鈥渄o not want cheap products; they want good products with low prices.鈥
Shoppers have pulled back spending in the past year as costs have risen 20% to 30% higher than they were three years ago and as incomes failed to keep up, Sarah Wyeth, managing director, retail and consumer with S&P Global Ratings,
Amazon also said that starting Tuesday it would add more grocery discounts for Prime members, its . Shoppers at its roughly stores and online are getting price cuts on more than 3,000 items.
Typically, Prime members get a 10% discount, but now they can get up to 50% off eight to 15 grocery items that change weekly, including fresh produce and meats. And more than 1,200 rotating grocery items from popular brands will be discounted 25%. Prime members will also get an additional 10% off its new lineup of Saver products.
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