Amazon launched a new grocery store brand on Wednesday to attract price-conscious consumers, with most items priced below $5. The retail giant stated in a press release that the new brand, named “Amazon Grocery,” offers over 1,000 products including dairy, fresh produce, meats, seafood, snacks, and baking essentials. Amazon mentioned that this new brand will integrate with its existing brands “Happy Belly” and “Amazon Fresh,” selling “Amazon Grocery” branded groceries online and in Amazon Fresh stores.
Jason Buechel, Vice President of Amazon’s global grocery business, stated in a press release, “In a time when consumers are particularly focused on prices, ‘Amazon Grocery’ offers over 1,000 high-quality grocery items, covering all categories without compromising on quality and taste – from fresh produce to irresistible snacks and pantry essentials – all sold at low, competitive prices to help customers further stretch their grocery budgets.”
This move comes as Amazon’s grocery business is undergoing a period of adjustment. In mid-August, Amazon announced the expansion of its same-day delivery service for fresh foods to over 1,000 cities and towns across the USA, signaling success in the grocery business after years of strategic adjustments. The company also plans to expand the service to at least 2,300 locations by the end of this year and further increase coverage in 2026.
Last week, Amazon’s CEO Andy Jassy and other executives revealed that the online grocery business saw successful sales of “everyday essentials,” including canned goods, paper towels, dish soap, and snacks. With food prices on the rise, many consumers have turned to lower-priced products, with private label products becoming a highlight for American grocery retailers. Both Walmart and Kroger stated this year that their private label products gained more market share compared to other branded groceries.