Retail expert shares insights.
Amazon will be opening its physical doors to Australian consumers in September 2017. Distribution centres and performance centres will be in every state with stores primarily in regional areas, and prices are expected to be as much as 30% cheaper than competitors, according to media reports.
Speaking to Appliance Retailer, Brian Walker from the Retail Doctor Group expects Amazon to be an “aggressive player” who will challenge existing retailers, particularly the independents and smaller retail businesses.
“There’s no doubt that Amazon is a dominant retailer and has become a global phenomenon. Even Wesfarmers’ Richard Goyder has said the company fears no domestic competitors but is anxious about Amazon entering the market through a physical presence,” Walker said.
“Retailers will be forced to dial up their point of difference and customer service. They will need to invest their capital in the omni-channel offering, staff training, pre-sale activity and post-purchase activity to give consumers a compelling reason to shop with them,” he added.
Walker also said he wouldn’t be surprised if more retailers joined forces and if we see similar activity to that of the JB Hi-Fi acquisition of The Good Guys.
Amazon net sales increased by 29% to $32.7 billion in the third quarter, compared with $25.4 billion for the previous corresponding period. Operating income was $575 million, in comparison to $406 million for the previous corresponding period.