Amazon brick/mortar stores coming to Australia soon - "We are going to destroy the retail environment in Australia"

https://www.reddit.com/r/australia/comments/5aulpd/amazon_is…
http://www.businessinsider.com.au/fund-manager-amazon-is-com…

Dick Smith crumbled thanks to the emergence of dropshipping sellers on eBay, and Woolworth's is having a hard time coming up with ways to fight against Coles and Aldi, but now that we have what is possibly the world's most successful e-commerce company (beating Walmart), the retail landscape is starting to look rather unpredictable for the next few years.

Would you shop at Amazon for your daily neccessities and fresh produce? Will Amazon mean the death of your favourite clothing store / computer store / MSY / BookDepository? Will Gerry Harvey finally die of heart attack? Who knows? All we know is we love Amazon!

[Scrimshaw is not affiliated with Amazon in any means]

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Comments

  • +12

    Depends if Amazon give us US based pricing (relatively close) or prices just to compete with the Australian inflated market.

    Take Ikea for example, they entered the Australian market but jacked up all their pricing compared to their overseas counterparts. They entered the market successfully, but I don't believe made any real impact. Or CostCo, they were suppose to be the supermarket killers, but alas they barely made a dent.

    Amazon will see the increased profits to be made in Australia, thus making it appealing to expand too. If they are aggressive and offer amazing prices and quality, sure they will crush it. But I expect them to barely beat aussie pricing, offer a limited range and little will change.

    • +1

      Maybe they will use this formula

      1. Underprice
      2. Kill the competition
      3. Raise prices

      Amazon has very deep pockets so no doubt they might be able to bear the grunt of loss leaders in the first or second quarter to squeeze retailers dry, then get everyone hooked on Amazon Prime subscription before slowly turning up the profit margins.

  • +3

    Strange that they would open physical stores, I would've more expected warehouses.

    Also, what's the bet that they guy divulging the info, holds shares in Amazon. He divulges all this awesome info, people buy up the shares, he makes money ;)

    • The older generation of shoppers prefer Brick and mortar physical stores, for the peace of mind of easy product returns. to quote a redditor 'how are you supposed to return an item, if they don't have a store!?'

  • All we know is we love Amazon!

    . - Jeremy Clarkson, The Grand Tour 2016

  • I would take these rumours (because that what it is without official confirmation) with a grain of salt.

    Why would they ignore Australia for many years and then all of a sudden decide to open physical stores in every state? I don't think that they have ever done that before in any other country. Makes no sense.

    Besides, if they were actually looking to open that many physical stores, that would not go unnoticed. It takes a lot of time and effort to organise all of that. Building distribution centres is also not that fast and easy.

    • Yeah I don't see physical stores happening either. Although, Masters has a fair bit of real estate up for grabs…

  • +1

    I would love to go up your amazon scrimmyshaw:)

    • +3

      Username checks out

    • +2

      my amazon rain forest is tropical, warm and moist

      • +2

        And full of creatures…?

  • +5

    All your retail bases are belong to us…

  • I for one welcome our glorious corporate overloads.

  • +2

    Why would I believe this internet news? Internet news is made most of the time (and sometimes not even written by a human being) for the sole purpose of getting people to click ads.

    • Its on 7 news tonight too

      • +2

        Hahahahaha.. well it must be true then!

  • Better off destroying things so they can be rebuilt.

  • +2

    Touché to Savas - the only person to describe themselves as a slut, obviously is.

  • +1

    All they will do is offer discounts at the start to kill off all the other sellers then jack up the prices.

  • -2

    K

  • Bookdepository is already owned by Amazon lol. As for me, I'm going wherever things are cheaper.

  • i hope they sell items similar to the ones on the american site.

    there are so many specific brands and styles i can never find in aussie stores yet are readily available on amazon.

  • I guess soon enough we'll be having our own Prime Day :)

  • how GST works will be interesting.. wonder if the Aust govt will tolerate them grey marketing everything

    • Won't be a problem for a big corporation like Amazon; as other multinationals have discovered, we have the best politicians money can buy…

      • we have the best politicians money can buy…

        Jawbs and Growth.

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