Amazon AMZN shakes the grocery landscape with expanded Prime member benefits, unleashing substantial discounts at Amazon Fresh outlets, a strategic move aiming to enhance affordability and convenience for its loyal customers.

Redefining Savings

The newest development ushers in exclusive discounts on over 3,000 grocery items for Prime subscribers, accessible both online and in-store.

This revamped savings initiative rolls out discounts of up to 50% on rotating grocery essentials and presents a flat 10% off on Amazon’s in-house brands.

Introducing Amazon Saver

Amazon unveils its latest venture, Amazon Saver, a private-label brand tailored for cost-conscious consumers. This new line of budget-friendly grocery staples is now available for purchase, both online and in brick-and-mortar stores, where Prime members can relish an additional 10% price cut.

Maximizing Benefits

Prime members also stand to gain by earning a 5% cashback on their transactions using the Prime Visa card, amplifying their savings whether shopping virtually or physically.

Competition Heats Up

Amazon’s aggressive push signifies a direct confrontation with retail giant Walmart WMT, a heavyweight that boosted its U.S. grocery market foothold through aggressive discounting, albeit at the cost of margins.

Notably, Walmart secured the top spot in the U.S. grocery sector in 2023, commanding a market share of 23.6% according to Statista data.

Amazon’s robust second-quarter performance saw a rise in topline growth by 10% year-over-year to $148 billion, though it slightly missed the Street’s consensus figures.

Projections for the third-quarter estimates net sales in the range of $154 billion to $158.5 billion, a forecast that slightly lags behind the consensus figure of $158.24 billion. Analyst Deepak Mathivanan from Cantor Fitzgerald anticipates an expansion in the company’s e-commerce prowess owing to a more regionally focused approach.

Price Action: Amazon’s stock, under the ticker AMZN, is up 1.20% at $177.50 in premarket trading as of the latest check on a Tuesday.

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