Amazon launches new Amazon Saver private label to help shoppers save, take on Walmart, Target

(NEW YORK) — Amazon is expanding its grocery footprint, simplifying online shopping and launching a “new no-frills brand” to help consumers stretch their dollar, while taking aim at rival retail competitor Walmart.

On Wednesday, the retail tech giant, which owns Whole Foods as well as its own grocery service Amazon Fresh, announced expanded Prime member savings both in-store and online, the launch of a new private label brand, Amazon Saver, and enhancements to the online user experience.

“We’re always looking to make grocery shopping easier, faster, and more affordable for our customers,” Claire Peters, worldwide vice president of Amazon Fresh, said in a statement. “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 — whether you’re browsing the aisles or filling your online cart.”

What is Amazon Saver?

Amazon’s new private label brand, Amazon Saver, will offer an array of grocery staples from crackers and cookies to canned fruit and condiments.

Most Amazon Saver items will be priced under $5, and Prime members will get an additional 10% off these products.

“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.”

As of time of publication, some items include a 42-ounce can of oats for $3.99, several flavors of 15-ounce coffee creamers for $3.49 each, and a 15-ounce can of traditional pizza sauce for $1.09.

Hitha Herzog, retail expert and chief research officer of H Squared Research, told ABC News’ Good Morning America that as a parent company, “Amazon has several different brands and grocery silos within the grocery umbrella — and with Amazon Saver, we are talking just basics.”

“What is different about Amazon is that the logistics of them handling the product to the customer is at the top. They are able to get this product very quickly,” Herzog said.

The new line from Amazon takes on other budget-friendly private labels like Great Value from Walmart, Good & Gather from Target, and Bowl & Basket from ShopRite.

Food prices post-pandemic continue to rise

Food prices have been volatile for both the at-home and away from home categories, with two of the six major grocery indexes — meats, eggs and produce, as well as dairy — on the rise, even as inflation cooled, according to August Consumer Price Index data from the Bureau of Labor Statistics.

While there are some signs of stabilization after rapid increases during the last three years out of the COVID-19 pandemic — which resulted in massive supply chain issues with labor shortages from farms and producers to manufacturing and distribution — the cost of food is still a considerable expense.

According to the United States Department of Agriculture, families spent more than 11% of their disposable income on food in 2023, with a little over 5% of that going to groceries.

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