Amazon has followed Target and Walmart’s lead and launched its own private label grocery store as the high cost of groceries continues to be a burden on households.

The announcement of Amazon Saver comes after Target launched its cheapest brand yet, dealworthy, in February and Walmart launched bettergoods, its largest private grocery brand in decades, in April.

Amazon touted the brand as a “no-frills brand” that will help save on grocery budgets, as most items cost less than $5. Prime members get an additional 10% off these products.

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The brand will be available in-store and online.

Amazon is launching a new private label grocery brand called “Amazon Saver.” (Amazon)

The company has already started rolling out the new private label. The company plans to expand the Amazon Saver range by more than 100 items.

Amazon Saver will join the e-commerce giant’s growing list of private labels such as Aplenty, Amazon Fresh, Amazon Kitchen, 365 by Whole Foods Market and Happy Belly.

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To attract shoppers and increase traffic in stores, companies try to launch cheaper brands.

Amazon’s move shows how the company is trying to “help its customers spend more while trying to gain larger market share,” said Joe Feldman, managing director and senior research analyst at Telsey Advisory Group.

Feldman told FOX Business that grocery retail has seen an “acceleration in price intensity this year, along with a moderation in inflation and even deflation in some categories.”

What we have observed is that “retailers have invested in pricing and private label products that are generally cheaper than branded products but generate higher profits,” Feldman said.

These private labels generate loyalty and the “increased emphasis on taste and quality of the products is well received by customers,” he added.

After Walmart launched its own grocery brand, the company said last month that it “continued to experience strong momentum in private-label sales, with grocery penetration increasing 30 basis points in the first fiscal quarter.”

Walmart launched a private label called Bettergoods in April. (Walmart)

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During an earnings call in August, Walmart said that “private label penetration continues to increase” and that it is “very encouraged by customer acceptance of our new grocery brand, bettergoods.”

Earlier this year, Chief Financial Officer John David Rainey told analysts that more than half of all customer shopping baskets last year included private label items.