Chinks in the Amazon Armor?

DAVID LUMMIS | February 4, 2019

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Amazon’s May 2018 launch of Wag private label dog food didn’t exactly take the world by surprise. In its annual U.S. Pet Market Outlook report, published in early March, Packaged Facts speculated that “Shortly after its Whole Foods acquisition, Amazon began offering the retailer’s Whole Paws pet food online, and in short order, Packaged Facts expects to see Amazon extend its cross-category AmazonBasics brand—which already includes a wide selection of nonfood pet products—into pet food and launch a new superpremium pet food brand.” The day of the Wag debut, One Click Retail founder Spencer Millerberg told Retail Dive (on May 3) that “The way Amazon entered pet food was predicted and makes complete sense. Pet products on Amazon grew over 40 percent last year and now make up over $2 billion in sales annually. Amazon has also selected the highest moving categories within pet. Pet food is a logical place to start, and we predict next Amazon will move to other fast moving categories such as pet treats, pet crates/habitats, and pet health care products.”

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