Amazon Launches Budget-Friendly Grocery Brand 'Amazon Saver'

Amazon is launching a new private label brand called Amazon Saver, offering groceries and household staples at bargain prices. Most items will be priced at under $5, putting Amazon in direct competition with low-cost rivals like Aldi, Walmart, and Target.

The initial rollout includes pantry items like cookies, crackers, canned fruit, and condiments. But Amazon plans to add over 100 new products in the coming months, from fresh produce to sliced deli meats. It's a strategic move to attract price-conscious shoppers who have been trading down to store brands to save money.

"Amazon Saver complements our selection of private-label brands, designed to provide the best value for a wide range of grocery products," the company said in a press release. "We've just started to roll this new private label out with several products, and will add more than 100 items to the Amazon Saver selection over time."

The company is also sweetening the deal for Prime members, offering additional discounts of up to 50% on rotating weekly items at its Amazon Fresh stores and online. Over 1,200 popular brand-name products will see price cuts of 25%. And Saver items will be an extra 10% off for Prime subscribers.

"We're always looking to make grocery shopping easier, faster, and more affordable for our customers," said Claire Peters, worldwide vice president of Amazon Fresh. "With expanded Prime member savings, the introduction of the new Amazon Saver brand, and simplified online shopping, it's now easier than ever to get your weekly grocery shopping done on a budget with Amazon Fresh."

Retail experts see the move as a necessary step for Amazon to stay competitive. "Amazon still has big ambitions in grocery, so it needs to jump on this bandwagon as well as sharpen its value for money position," said Neil Saunders, managing director at GlobalData Retail. "Saver products will help the business to accomplish this as it provides stronger opening price points."

But Saunders cautions that quality is key. Shoppers "do not want cheap products; they want good products with low prices."