Monday, 9 January 2017
by Prinitha Govender, Power Retail
A top US retail analyst says that when Amazon comes to Australia, we can expect some second tier shopping centres to become “white elephants,” as commercial property falls, according to The Financial Review.
In addition to this, a recent Citi report says the likely arrival of Amazon in Australia could see the earning potential of some of our top traders, including Myer and JB Hi-Fi, drop by 23 percent.
A good reason for this major disruption is that Australia has huge profit margins. Amazon plans to come in and take advantage of that. And if retailers are planning to compete on price alone, it’s unlikely they will survive. They need to think along the lines of offering consumers more than “just cheap.” Read more.