Amazon Launches 'Amazon Grocery' to Intensify US Grocery Competition
Amazon is set to intensify competition in the US grocery market with the launch of its new private label, 'Amazon Grocery'. The e-commerce giant plans to offer over 1,000 articles, with most items priced under $5. This move comes as traditional food producers and retailers face pressure from Amazon's growing investment and expanding logistics capabilities in the food market.
Amazon's existing private labels in the US food market, such as Happy Belly and Amazon Fresh, have already made a mark. The launch of Amazon Grocery is expected to further boost the market share of private labels in the US grocery market. This new venture will compete with established retailers like Walmart and Target, as well as large food companies like Kraft Heinz and PepsiCo, which have been grappling with declining sales and stagnation in certain segments.
Walmart, however, has seen its stock perform positively since Amazon's entry into the food market. DER AKTIONÄR, a German financial magazine, reports a gain of almost 15 percent in Walmart's stock since its recommendation in issue 20/25. This suggests that Amazon's expansion into the food market may not entirely spell doom for traditional retailers.
With the launch of Amazon Grocery, the US grocery market is poised for increased competition. Traditional food producers and retailers will need to adapt to the growing presence of Amazon in the sector. While the impact on specific companies like Kraft Heinz is clear, the full extent of Amazon's influence on the market remains to be seen.
