Amazon is lowering prices on thousands of grocery items and introducing a new private label food brand called Amazon Saver.
The discounts are part of Amazon’s effort to offer more products at lower prices across its entire retail business. This move is a response to competitive pressures from Walmart and Target, both of which have announced their own price cuts in recent months.
The new Amazon Fresh savings are available for Prime members, who pay $139/year, and can be accessed in physical Amazon Fresh stores as well as through online grocery delivery.
Discounts include up to 50% off eight to 15 grocery favorites that rotate each week, covering produce, protein, and pantry staples. Additionally, there are extra savings on Prime-exclusive grocery items and Amazon private-label brands.
The new private label brand, Amazon Saver, is a “no-frills” brand with most items priced under $5. Prime members receive an additional 10% off. Several products have already been launched, and Amazon plans to expand the brand to include more than 100 items over time.
Amazon is introducing these discounts as more American voters cite grocery prices as a leading concern heading into the November presidential election.
In addition, Amazon announced that it has “simplified” the user experience on the Amazon Fresh online shopping storefront.
Customers can now select frequent purchases using the repeat items feature; set their preferred day and time windows for weekly grocery pickup and delivery through recurring reservations; browse shopping zones that group products by theme; and switch between categories aisle-by-aisle with new navigation.
Since Amazon launched the first version of Amazon Fresh in 2007, it has experimented with various models and pricing strategies for grocery items. The tech giant acquired Whole Foods for $13.7 billion in 2017 and continues to offer grocery delivery from both its Amazon Fresh brand and Whole Foods. It also operates over 40 Amazon Fresh physical stores across the U.S.
Recently, Amazon introduced a monthly ($9.99) and yearly ($99.99) grocery delivery subscription for Prime members. It is also expanding its third-party grocery delivery network by adding more retailers.
