Amazon: We're not exiting the private-label space

The e-giant is debunking a report in The Wall Street Journal published late last week that suggested it would shutter its house brands

Amazon is debunking a report in The Wall Street Journal about the future of its private-label assortment, saying in part that it will “continue to invest in this area.”

A spokesperson for Amazon told Canadian Grocer's sister publication Store Brands, “We never seriously considered closing our private-label business and we continue to invest in this area, just as our many retail competitors have done for decades and continue to do so today.”

The report from the Wall St. Journal, which went live on Thursday, said Amazon was “drastically reducing” its own brand product assortment and had discussed possibly exiting the private-label business.

As of 2020, Amazon reportedly had 243,000 private-label products covering 45 different private-label brands. Its private-label business dates back to 2009 and has expanded over the years to include a variety of consumable product lines along with apparel and home products. 

The report about Amazon’s private-label business was published the same day the company reported its biggest Prime Day event to date. Prime members purchased more than 300 million items worldwide, according to the company.

In addition, market research firm Numerator reported solid showings from Amazon private-label products in several key categories, accounting for 64% of smart home device purchases, 43% of consumer electronics, 38% of household essentials, 38% of grocery and 30% of apparel & shoes.

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