Monday 16 August 2021

Amazon To Add New Own-Label Food Range To Online Offering

The own-label food range developed for Amazon’s new grocery store format that launched in the UK earlier this year is set to be offered to its online customers.

The two ranges made their debut in March in the new ‘just walk out’ Amazon Fresh stores. Said to be sourced from UK suppliers, the ‘By Amazon’ label focused on everyday items such as milk and bread, whilst the ‘Our Selection’ offer covered more premium lines. They are sold alongside branded products and items that come from Morrisons and Booths.

NamNews Implications:
  • The ultimate test of a retailer’s pulling power (and ego) is the extent to which they can monetise their retail brand via own-label.
  • Key is the Generation they choose to position the offering (See our 1-page treatment of Four generations of own label)
  • i.e. like Tesco Finest, deliberately positioned as Gen 4: better than national brand but the same price.
  • Then branded suppliers have a real (and threatening) competitor…

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