The World's Biggest Retailer Is Coming Down Under In Weeks!
It has been tipped that US retailer Amazon could launch earlyin Australia and CITI analysts tip we will have them here before Christmas.
Amazon confirmed in April that it was about to launch down under after buying a former Bunnings warehouse in Melbourne and announcing German executive Rocco Braeuniger as country manager for Australia.
Fairfax Media reports that the $US50 billion ($62 billion) retail giant has placed first orders in recent weeks, according to Citi.
“This increases near-term gross margin risks for retailers as price will be Amazon’s key lever,” it said. “Amazon will not have a meaningful advantage in two of their three key pillars in the short term (range and delivery, which will evolve over time). As a result, we expect prices to be competitive in order to drive volume.”
Citi estimated the impact of Amazon’s arrival in the second quarter of 2018 could be $200 million, or 0.2 per cent of total retail sales.
Citi believes that if Amazon does launch during the Christmas shopping period, a number of retailers including JB Hi-Fi, Harvey Norman and Myer will see sales drop.