Aussie retailers facing huge, new competitive threat

Aussie supermarkets are in for some hefty competition, in the form of one of the world’s biggest online retailers.

US giant Amazon said last night that planned to be fully operational in Australia by the end of next year, Fairfax Media reported.

That means shoppers will be able to buy everything from food to clothes and tech goods direct from Amazon warehouses in Australia, rather than order non-perishables from the US and wait for delivery.

Amazon plans to offer a local version of its Prime membership program that provides faster delivery, as well as Amazon Fresh, its grocery delivery service, Fairfax reported, although it hasn’t committed to operating bricks-and-mortar shops.

Brian Ladd, a senior manager at Amazon Global Logistics, told Fairfax that the global e-tailer thought Australia was an attractive market, where it planned to launch as many services and products as possible.

The Commonwealth Bank’s Retail Insights Report, that was released on Monday, found that just under half of all the retailers surveyed were unworried about Amazon’s entry into Australia, which had originally been scheduled for September.

But the bank’s national manager for retail, Jerry Macey, told news.com.au that many Aussie stores had no idea of the impact Amazon would have.

“Thirty percent of retailers said they weren’t even aware of Amazon,” he said. “This is concerning when you consider the impact Amazon has had on the US, [which was] a very mature market.”

Would you order goods online from Amazon if they were significantly cheaper than in Aussie stores? Do you think the Australian retail sector needs more competitive?