Executive Briefings

Australian Retailers Resilient As They Face Down 'Amazon Effect'

Three months after the launch of Amazon in Australia, local competitors say they are still waiting for the dreaded “Amazon effect” to hit their sales.

Australian Retailers Resilient As They Face Down 'Amazon Effect'

Analysts, and some of the retailers themselves, say they are still as profitable as before Amazon’s “underwhelming” launch — for now.

On the stock market, where investors tend to have one eye firmly on the future, it’s a different story.

On Monday, high-performing local retailer JB Hi-Fi released a half-yearly update: growing profits, a steady market share, a drop in profit margins and disappointing results in New Zealand. As a result, its stock dropped 7.5 percent in the first three hours of trading — the company’s biggest volume of stock traded since 2016.

The day illustrated the fears investors have about the Amazon effect, despite the resilience of local retailers’ sales figures.

Kim Do, a senior industry analyst at Ibisworld, said the global giant had not yet actually affected retailers, with an undeveloped supply chain holding prices high enough to keep customers away.

Read full article

Analysts, and some of the retailers themselves, say they are still as profitable as before Amazon’s “underwhelming” launch — for now.

On the stock market, where investors tend to have one eye firmly on the future, it’s a different story.

On Monday, high-performing local retailer JB Hi-Fi released a half-yearly update: growing profits, a steady market share, a drop in profit margins and disappointing results in New Zealand. As a result, its stock dropped 7.5 percent in the first three hours of trading — the company’s biggest volume of stock traded since 2016.

The day illustrated the fears investors have about the Amazon effect, despite the resilience of local retailers’ sales figures.

Kim Do, a senior industry analyst at Ibisworld, said the global giant had not yet actually affected retailers, with an undeveloped supply chain holding prices high enough to keep customers away.

Read full article

Australian Retailers Resilient As They Face Down 'Amazon Effect'