Amazon on Wednesday expanded its private-label grocery lineup with the launch of a new brand aimed at “price-conscious” shoppers, with most products priced under $5.
The brand is called Amazon Grocery and includes more than 1,000 items, ranging from dairy, fresh produce, meat and seafood to snacks and baking essentials, the company said in a release. Amazon said the new offering unites its Happy Belly and Amazon Fresh brands under one label.
“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,” Jason Buechel, Amazon’s vice president of worldwide grocery, said in a statement.
Grocers and retail stocks slumped following Amazon’s announcement. Albertsons dropped more than 2%, while Walmart, Kroger, Costco and Target all fell about 1%.
It’s not the first time Amazon has experimented with a budget-friendly grocery brand. It launched a similar offering last September, called Amazon Saver, that was “focused on value.”
The move comes as Amazon’s grocery business has been in flux.
The company has continued to streamline its chain of Go cashierless convenience stores and Fresh supermarkets, announcing last week that it will close all of its locations in the U.K.
At the same time, Amazon CEO Andy Jassy and other company executives have touted the success of sales of “everyday essentials” within its online grocery business, which refers to items such as canned goods, paper towels, dish soap and snacks.
The company last month expanded same-day delivery of fresh foods to more pockets of the U.S. as it looks to encourage shoppers to add meat and eggs to their order while they’re browsing its sprawling online store.
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