Amazon Launches Budget Grocery Brand With Most Items Under $5

Amazon Introduces Affordable Grocery Line

Amazon has launched Amazon Grocery, a new private-label brand featuring a comprehensive range of grocery items with most products priced under $5. The brand encompasses everything from dairy products and cooking oils to fresh produce, meat, and seafood, available both online and at Amazon Fresh physical stores.

Consolidated Grocery Collection

The new Amazon Grocery brand combines the company’s existing Amazon Fresh and Happy Belly product lines into a single, cohesive grocery essentials collection. This strategic move creates a unified shopping experience for customers seeking affordable, quality grocery items.

Focus on Value and Quality

Jason Buechel, Vice President of Amazon Worldwide Grocery Stores and CEO at Whole Foods Market, emphasized the brand’s value proposition: “During a time when consumers are particularly price-conscious, Amazon Grocery delivers more than 1,000 quality grocery items across all categories that don’t compromise on quality or taste – from fresh food items to crave-worthy snacks and pantry essentials – all at low, competitive prices that help customers stretch their grocery budgets further.”

Competitive Landscape

The Amazon Grocery line positions itself to compete directly with other major retailers’ private label brands, including Walmart’s Great Value and Target’s Favorite Day lines. This move represents Amazon’s continued expansion into the competitive grocery retail space.

Product Expansion Plans

Amazon has revealed that the new grocery line includes several new product introductions such as:

Fresh bakery cinnamon rolls
Refrigerated pizza dough
Bottled spring water

The company plans to expand the selection in coming months with additional items including frozen pasta meals, pie fillings, granola, sliced loaf cakes, and expanded deli meat selections.

Building on Previous Initiatives

This isn’t Amazon’s first venture into budget-friendly grocery offerings. The company previously launched its “Amazon Saver” brand last year, focusing on affordable staples like canned goods and condiments. According to recent coverage of Amazon’s grocery initiatives, the company’s private-label brands continue to gain significant momentum.

Growing Customer Adoption

Amazon reports that customers are increasingly embracing their private-brand products, with purchases of private-label items increasing by 15% in 2024 compared to the previous year across Amazon.com, Whole Foods Market, and Amazon Fresh platforms.

Enhanced Delivery Options

The grocery launch complements Amazon’s recent expansion of its Same-Day Delivery service, which now allows shoppers in 1,000 U.S. cities to order perishable food items alongside everyday household products and electronics. This integration provides customers with comprehensive grocery shopping convenience.

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