Amazon is launching a new line of budget-friendly grocery items under the label “Amazon Saver,” targeting shoppers who are looking to cut costs amid rising food prices. With a focus on offering household staples and pantry items like cookies, crackers, and perishable goods such as sliced meats, Amazon’s new “no-frills” brand is expected to price most products at under $5. This move is seen as an effort to cater to price-conscious customers who are opting for private labels and lower-cost alternatives to name brands in their grocery shopping.
The introduction of Amazon Saver positions the company to compete more directly with retailers like Aldi, Target, and Walmart, all of which have popular private label brands designed to attract customers seeking affordable options. By focusing on value, Amazon aims to maintain its presence in the grocery sector, particularly as inflation has significantly impacted consumer spending over the last few years. Grocery prices have risen by 20% to 30% over the past three years, forcing many shoppers to rethink their purchasing habits.
Amazon already offers several private-label food brands, including Amazon Fresh, 365, and Happy Belly, but the Saver brand represents its lowest-priced offering to date. The new product line will complement these existing labels while giving the company a stronger competitive edge in terms of affordability. Neil Saunders, a retail analyst, suggests that Amazon needs to sharpen its value-for-money positioning to stay competitive in the grocery market, where price sensitivity has become a major factor for consumers. Saunders adds that quality remains essential, as customers want products that are both affordable and of good quality.
As part of this initiative, Amazon will also introduce additional discounts for its Prime members, with shoppers receiving significant price cuts both online and at its Amazon Fresh stores. Prime members can now get up to 50% off on select items, with discounts rotating weekly. Amazon Saver products will also be included in these promotions, further incentivizing membership and attracting budget-conscious consumers.
