'Amazon Cuts Dozens of House Brands as It Battles Costs, Regulators' - WSJ
Portfolio Pulse from Benzinga Newsdesk
Amazon is reducing its private-label operation, eliminating 27 of its 30 clothing brands and phasing out private-label furniture brands. The move comes as the company faces antitrust scrutiny and aims to boost profits. Amazon's private-label business, which had 243,000 products across 45 house brands in 2020, accounts for just 1% of the company's total retail sales. The Federal Trade Commission is preparing an antitrust lawsuit against Amazon, with representatives from the company scheduled to meet with FTC commissioners next week.
August 10, 2023 | 1:30 pm
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Amazon's decision to reduce its private-label operation could potentially alleviate some of the antitrust scrutiny it is facing. However, it may also impact the company's profitability and product diversity.
While the reduction of Amazon's private-label operation could potentially alleviate some of the antitrust scrutiny, it may also impact the company's profitability and product diversity. However, given that the private-label business only accounts for 1% of Amazon's total retail sales, the overall impact on the company's financial performance may be limited.
CONFIDENCE 85
IMPORTANCE 75
RELEVANCE 100