By Arlenys Tabare
May 26, 2024, 16:34 PM EDT
Faced with rising food prices, the e-commerce giant recently announced that will lower prices on at least 4,000 products in its Amazon Fresh extension.
According to the statement, Amazon will join other retailers that have been adjusting item prices since last year making them much more affordable to consumers.
It is for that reason that The e-commerce giant announced that it will offer a 30% discount on both its online services and its physical storesAccording to the statement, these discounts will vary every week.
Claire Peters, global vice president of Amazon Fresh, highlighted in the announcement that “increasing our weekly deals on thousands of items and expanding the reach of Prime Savings on Amazon Fresh is just one way we We continue to invest in competitive prices and savings for all our customersboth in-store and online,” he said.
Amazon seeks to be on par with competition such as Walmart or Target who in recent weeks have lowered the prices of their products with the aim of attracting and keeping their consumers.
However, the pressure of high inflation has caused consumers to retreat, especially in their discretionary spending, maintaining only essential purchasesFor Sarah Wyeth, managing director of retail and consumer at S&P Global Ratings, “there are simply fewer dollars for consumers to spend,” she noted.
According to the analyst, in just one year Costs have increased by 20% to 30%, while consumer incomes fail to keep up, taking into account that basic services, rent, gasoline, among others, have also increased. It is for that reason that Wyeth assures that now the biggest challenge for retailers will be to get consumers out of the mentality of abstinence from spending.
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