Amazon 'to launch own-brand groceries'

Household money

Updated on 18 May 2016 | 0 Comments

Online giant could be set to ruffle some more supermarket feathers

Would you buy a pack of Amazon-branded tea bags? Well, that could soon be an option if reports are to be believed.

The online retailing giant is said to be planning a range of own-brand groceries, including tea, coffee and many other household essentials.

The products could launch in the US as early as next month, according to the Wall Street Journal. When we asked Amazon UK whether any such service could launch here, a spokesperson told us the retailer "did not comment on rumour and speculation."

While Amazon is remaining tight-lipped, it's fair to say that most launches which succeed in the US tend to roll out in the UK at some point.

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Amazon's growing focus on groceries

What's not in question is Amazon's intention to grab a bigger chunk of the UK groceries market.

Late last year it massively increased the range of food and household products available through its online groceries service, Amazon Pantry. Speaking at the time, Amazon UK boss Christopher North said he planned to grow the service rapidly in the new year.

More recently it announced a tie-up with Morrisons that will see the supermarket supplying fresh and non-perishable goods through Pantry.

In many ways, rolling out a range of own-brand goods would be the logical next step for Amazon.

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Why sell goods under your own name?

One thing we've learned from the rapid rise of Aldi and Lidl is that there's definitely demand shoppers for cheap non-brand and own-brand products in the UK.

As for the retailers, own-brand products are attractive because they are more profitable, saving money costs on brand development and marketing.

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