Amazon introduces "Amazon Saver," a new, budget-friendly private label for groceries, targeting price-sensitive customers. The e-commerce giant aims to compete with rivals like Walmart and Target, which have already launched similar private labels. The new brand will offer affordable products both in the online store and in physical Amazon stores, with most items priced under five dollars. Prime members will receive an additional ten percent discount.

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"Amazon Saver complements Amazon's growing portfolio of private labels, which already includes Aplenty, Amazon Fresh, 365 by Whole Foods Market, and Happy Belly. The launch comes just a few months after Target introduced its 'dealworthy' brand and Walmart launched 'bettergoods.' With Amazon Saver, the company aims to reduce customers' spending on groceries while simultaneously increasing competitiveness in the highly contested retail environment.

According to Joe Feldman, Managing Director at the Telsey Advisory Group, this move reflects Amazon's efforts to both strengthen customer loyalty and gain market share. "The grocery environment has seen increased price intensity this year, while inflation has moderated," says Feldman. Private labels, which are typically cheaper than branded products, offer higher margins for retailers and promote customer loyalty through quality and taste.