Reports about Amazon developing a private-label team as it expands its grocery business prompted the following comment from a recent RetailWire panel discussion:
Selling branded goods, not its own brands (with the exception of the Kindle) is central to the Amazon brand. (Not to mention great execution, competitive prices and broad assortments.) So I’m not certain that a deep dive into private brands is as critical to the success of Amazon’s grocery business as the competitive advantages it has already developed.
The most important step Amazon can take to have an impact in the shop-from-home (and home delivery) grocery business is to focus on logistics. While Amazon is busy building huge distribution centers around the country, it may also want to consider the wisdom of buying an existing food distribution company as a partner.