It was said that Amazon’s arrival in Australia would decimate local retailers, as it had in the US, but, one year on, how much impact has it really had?
Despite the declaration by Wesfarmers former CEO Richard Goyder that Amazon Australia would “eat all our breakfasts, lunches and dinners”, one year on, and two-thirds of our domestic retailers remain unaffected.
Former CEO of Facebook Australia Stephen Scheeler told Your Money Live that Goyder may still be proven correct but that it would take a little while before the online titan stole our retail thunder.
“I agree with Richard, I think Amazon is still going to present huge challenges to many Australian retailers,” Scheeler said.
“What is interesting with some of the results you’ve seen over the past 12 months is the whole online marketplace has risen, I think, about nine or ten per cent, something like that. Amazon has risen more than that, 40 or 50 per cent,” he explained.
While our online space is still growing, Amazon Australia is yet to cut into retailers’ bottom line, but it’s not a zero-sum game, according to Sheeler.
“What you’re seeing is, essentially, there’s a shift in Australian shopping patterns moving online and Amazon is pulling that market along,” he explained.
“It’s not just a matter of Amazon winning, I think there will be other winners as well.”
Watch the full interview above.