Amazon is following the lead of Aldi and Target by introducing a new range of affordable food products aimed at consumers looking to save money by opting for budget brands over name brands. The company is launching a "no-frills" private label brand named Amazon Saver, featuring a variety of household and pantry essentials such as cookies, crackers, and even perishable items like sliced turkey and ham, all priced at under $5. In the coming months, over a hundred more items are set to be added to the lineup. While Amazon already has several private label food brands like Amazon Fresh, 365, and Happy Belly, Saver stands out as the most cost-effective option, aligning with the company's goal to offer the best value across a spectrum of grocery products.

Amazon is also gearing up to compete with rivals Walmart, Target, and Aldi, who have all found success with their own budget-friendly private label brands. This move is part of a broader strategy among retailers to retain customers in the face of persistently high grocery prices. Years of high inflation have led consumers to reassess their spending, prioritizing value in their grocery shopping, as similar items can vary significantly in price depending on the brand.

Neil Saunders, a retail analyst and managing director at GlobalData Retail, noted that Amazon's ambitions in the grocery sector necessitate joining this trend and enhancing its value proposition. The Saver line is expected to strengthen Amazon's position by offering more competitive entry-level prices. Saunders emphasized to CNN that the Saver brand must maintain "reasonable quality," as consumers are not seeking merely cheap products but rather good products at low prices.

With costs rising by 20% to 30% over the past three years and incomes not keeping pace, consumers have been cutting back on spending, as Sarah Wyeth, managing director of retail and consumer at S&P Global Ratings, previously informed CNN. In response, Amazon announced that starting Tuesday, it would offer additional grocery discounts to Prime members, who pay a $139 annual fee for the membership program. Shoppers at Amazon's approximately 50 Fresh stores and online will see price reductions on over 3,000 items. While Prime members typically receive a 10% discount, they can now get up to 50% off on a rotating selection of eight to 15 grocery items each week, including fresh produce and meats. Additionally, more than 1,200 popular brand grocery items will be available at a 25% discount, and Prime members will receive an extra 10% off the new Saver products.