In a push to compete with the growing number of discount grocers, Amazon is launching a line of inflation-friendly groceries in the U.S. under a new banner, Amazon Saver.
Driving the news: We know what you’re thinking — this does feel eerily similar to the No Name ultra-discount grocer launched by Loblaw last month. In Amazon’s line, most of the food items will also cost under $5, but Prime members will get an additional 10% off.
- The company's growing empire of food brands includes online delivery service Amazon Fresh, Whole Foods, and two private-label brands, 365 and Happy Belly.
Why it’s happening: Amazon is betting that budget products offer the best way to expand its grocery business right now — and it’s not wrong. In Canada, nearly 60% of shoppers are already looking for discounted groceries at places like No Frills, FreshCo, and Dollarama.
Why it matters: With millions of existing Prime members, a global network of 185 distribution centres, and a grocery delivery system already in place, Amazon has all the ingredients to challenge the industry's biggest players on price and convenience.—LA