Amazon really wants to win Walmart and Aldi shoppers - and it's offering a $5 line of groceries to persuade them

"The e-commerce giant is merging two of its private-label grocery brands - Amazon Fresh and Happy Belly - into one budget-minded offering with simpler packaging, the company said on Wednesday. Amazon Grocery offers more than 1,000 grocery items, most of which are priced at less than $5, the company said. "They don't compromise on quality or taste," Whole Foods CEO and president of Amazon's grocery stores Jason Buechel said in a statement."

"The company's private-label brands have gained steam recently, with Amazon and Whole Foods shoppers buying 15% more products last year compared to 2023, the company said. The newest offering will complement Amazon's other private-label grocery brands, Amazon Saver and 365 by Whole Foods. US shoppers are increasingly turning to store brands for relief on their household budgets following several years of inflation, and retailers are responding by investing in raising the quality and variety of their offerings."

"The new brand comes as the e-commerce giant has been making a big push into grocery stores. It's looking to snag share from stores like Walmart and Aldi, both of which are making moves in their own private label offerings. Aldi last week revealed a packaging refresh that puts its name front and center on its store brand groceries, like "Red Bag Chicken," to give shoppers a clearer sense of quality and value."

Amazon consolidated its private-label groceries by merging Amazon Fresh and Happy Belly into a single brand called Amazon Grocery, featuring simpler packaging and over 1,000 items with most priced below $5. The brand positions itself between Amazon Saver and 365 by Whole Foods and is available online and in select US stores. Private-label purchases at Amazon and Whole Foods rose 15% year over year. Shoppers are turning to store brands for budget relief after inflation, driving retailers to improve quality and packaging. Amazon aims to capture grocery market share from rivals such as Walmart and Aldi.

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