Amazon.com, Inc (NASDAQ: AMZN) expanded its Prime member benefits for grocery shoppers, offering significant discounts at Amazon Fresh stores, making it more affordable and convenient for customers.
The update includes exclusive savings on more than 3,000 grocery items for Prime members, both online and in-store.
The new savings program offers up to 50% off rotating grocery items and a 10% discount on Amazon's private-label brands.
Amazon also introduced its latest private-label brand, Amazon Saver, catering to budget-conscious shoppers.
Amazon Saver, the company's new line of affordable grocery essentials, is available online and in stores. Prime members enjoy an additional 10% discount.
Prime members can also earn 5% back on their purchases with the Prime Visa, maximizing savings online and in-store.
Amazon's move marks its attempts to snatch market share from Walmart Inc (NYSE: WMT), which succeeded in growing its U.S. grocery market share by offering discounts and taking a margin hit.
Walmart held the top position in the U.S. grocery market with 23.6% market share in 2023 as per Statista.
In August, Amazon reported second-quarter topline growth of 10% year-over-year to $148 billion, missing the Street consensus of $148.56 billion.
It expects third-quarter net sales of $154 billion-$158.5 billion, versus the consensus estimate of $158.24 billion. Cantor Fitzgerald analyst Deepak Mathivanan expects a boost in the company's e-commerce moat with more regionalization.
Price Action: AMZN stock is up 1.20% at $177.50 premarket at the last check Tuesday.