We all bring our own opinions about private labels to the table when it comes to supply and demand. So, when a retail leader such as Amazon makes moves to trim its own private label brands, our ears perk up. Reports surfaced that Amazon will be cutting several brands in its portfolio with the possibility of exiting the business altogether.
As of 2020, the retailer owned 45 of its own brands, culminating with over 243,000 products. The Wall Street Journal reported Amazon has already begun to reduce the number of private label items it sells in an effort to alleviate regulatory pressure.
People familiar with the matter reportedly stated that the decision comes as the result of disappointing sales for many of the items.
Over the past six months, Amazon executives have been reducing private label items ordered with plans to trim the brands by more than half. The source stated that this decision came after former Head of Global Consumer Business Dave Clark encouraged the company to home in on one specific private label brand.
As to how this will affect the specialty sector, information hasn’t been revealed yet, but Deli Market News will continue to report.