Amazons retail chief Jeff Wilke defended the retailer from allegations that it unfairly competes with third-party vendors who sell on its site. .saying Amazon’s Private Brand business is smaller than competitive retailers
Reported by Bloomberg, “Most of our competitors have a much larger percentage of their sales in private label” than Amazon, Wilke said during the company’s re:MARS conference in Las Vegas. He added that private brands accounted for about 1% of the retailer’s sales. Private brand has long been a strategy of the largest retailers in the world including Sears, Kroger, A&P, Home Depot Publix, Best Buy and dozens of other retailers. In 1927, Kenmore first appeared on a Sears laundry appliance. By 1936, Sears had already sold 1 million Kenmore laundry items. Today, nearly one in every three American homes contains a Kenmore appliance. Sales of Costco’s Kirkland Signature private brand grew to $39 billion in 2018, up from $35 billion the previous year, the retailer reported in December.
The news follows increasing scrutiny from Massachusetts Sen. Elizabeth Warren, the FTC and the Department of Justice over Amazon’s relationship with third-party sellers, alongside calls for the tech giant to be broken up.
Wilke went on, “We believe that the most substantial entities in the economy deserve scrutiny, and our job is to build the kind of company that passes that scrutiny with flying colors.”
Wilke has also denied claims Amazon Inc should be broken up.