As FTC Lawsuit Looms, Amazon Makes Strategic Cuts to In-House Brands While Focusing on High-Value Offerings
In the face of mounting antitrust scrutiny and an impending potential lawsuit by the Federal Trade Commission (FTC), Amazon has initiated a strategic move to streamline its in-house brands. Reports from The Wall Street Journal indicate that the e-commerce giant is set to discontinue 27 of its 30 clothing brands and all private-label furniture lines. This maneuver is seen as a response to potential antitrust concerns and a realignment of its offerings to resonate more with customers.
The decision comes as Amazon seeks to optimize its portfolio of in-house brands, with a particular focus on retaining those that hold strong appeal to customers. Notably, the Amazon Basics brand appears to be largely unaffected by these cuts, underscoring its significance within Amazon’s offerings.