E-commerce giant Amazon (AMZN) just launched a new grocery brand called Amazon Grocery that will target shoppers who want to save money. Indeed, the new brand includes over 1,000 items, most of which are priced under $5, and covers products such as fresh produce, dairy, meat, seafood, snacks, and baking essentials. It also combines products from Amazon’s existing Happy Belly and Amazon Fresh lines into a single brand, thereby making things simpler and more affordable for customers.
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According to Amazon’s Vice President of Worldwide Grocery, Jason Buechel, the timing is intentional. In fact, many consumers are trying to cut costs, and Amazon Grocery is designed to offer quality products that don’t sacrifice taste while keeping prices low. Interestingly, though, this isn’t Amazon’s first attempt at targeting value-focused shoppers, as it previously launched a brand called Amazon Saver in 2023 with a similar goal of delivering affordable groceries.
Nevertheless, the current launch comes as Amazon continues to shake up its grocery strategy. Indeed, the company is closing all of its Go convenience stores in the UK and making changes to its Fresh supermarkets. At the same time, Amazon is expanding its presence in online grocery shopping, particularly for everyday essentials such as canned food, snacks, and paper products. It has also recently expanded its same-day delivery for fresh groceries to more U.S. areas.
What Is the Price Target for AMZN Stock?
Turning to Wall Street, analysts have a Strong Buy consensus rating on Amazon stock based on 44 Buys assigned in the past three months. Furthermore, the average AMZN stock price target of $266.66 per share implies 21.6% upside potential from current levels.
