The news: Amazon will sell products from its Whole Foods private labels in Singapore, a country where it has no physical stores, per Bloomberg. That experiment could be repeated in other markets, giving the retailer an opening to grow its grocery business without investing in brick-and-mortar retail.
The details: Amazon will sell around 300 private-label items via its Amazon Fresh delivery service. Shoppers will also be able to purchase the products at local organic supermarket Little Farms, which has eight locations.
Our take: The private label expansion extends the strategy Amazon has used in the US to grow its grocery business. Shoppers can buy 365 by Whole Foods Market and Whole Paws products on Amazon, even if they live in areas without Whole Foods stores—a function the retailer is looking to expand.
The move is also revealing for what it says about Amazon’s approach to Whole Foods, and its grocery business as a whole. While the company was previously focused on developing an entirely new banner, Amazon Fresh, to offer a fresh take on the grocery shopping experience, it is now focusing on expanding Whole Foods’ appeal.
- Amazon plans to close all 19 of its UK Fresh supermarkets, and convert five into Whole Foods locations—a clear sign that the latter’s strong brand and health-conscious positioning are resonating more strongly with shoppers than cashier-free stores.
- It also recently introduced smaller format Whole Foods stores and is looking to test micro-fulfillment centers to expand the range of products available.
Rather than investing in a brick-and-mortar concept that could fall flat, Amazon is choosing to lean on Whole Foods’ global recognition to smooth its path to grocery growth.
This content is part of EMARKETER’s subscription Briefings, where we pair daily updates with data and analysis from forecasts and research reports. Our Briefings prepare you to start your day informed, to provide critical insights in an important meeting, and to understand the context of what’s happening in your industry. Non-clients can click here to get a demo of our full platform and coverage.