Monday 16 May 2016 9:29 am

Watch out Tesco, now Amazon’s creating its own-brand range

Is Amazon trying to eat even more of Tesco and the rest of the supermarkets' lunch?

Not satisfied with muscling in on the grocery world with speedy deliveries straight to your door, the retailer-slash-tech giant is now planning on selling its own-label range of food and other sundries, according to reports.

A new line of products that includes nuts, spices, coffee, baby food, nappies, laundry detergent (all the essentials) is planned, and set for launch as soon as June, unnamed sources told the Wall Street Journal.

Names for the ranges are touted as Happy Belly for food, Wickedly Prime for snack foods, Mama Bear for baby stuff and Presto for household goods.

While the US is the likely focus initially, with Britain losing any qualms they may have had about buying non-brand products in recent years – thanks recession! – and the ever growing popularity of Aldi and Lidl, there's certainly no dearth of opportunity this side of the pond.

First came Amazon Pantry, now own brand goods – how worried should the supermarkets be?

[poll id="20"]

"If Amazon is gaining traction in food, particularly in the US, then it is wholly logical to expect the retailer to follow a well worn path of grocers over the years to try and offer lower prices and yet boost percentage gross margin by selling own-label goods," ShoreCap analyst Clive Black told City PM.

"What this means remains to be seen, most particularly how proprietary brand suppliers react as well as customers too."

Whether the UK's supermarkets saw the move coming or not, there's still time for them to prepare though.

"With respect to the UK, well it is early days but clearly life is easier for the incumbent retailers with less rather than more competition. That said, competition does make most organisations better and we believe that we're some way off Amazon 'killing' a British grocer. So, British grocers should be seeking to understand, to shop ahead of Amazon's challenge to the extent that it exists," he added.

The big winner in the battle of Amazon versus the supermarkets? As always, it's likely to be the punters, says Black.