Amazon has confirmed its Australian retail operations - Westpac
Analysts at Westpac explained that Amazon has confirmed its Australian retail operations will launch on Nov 24.
"While key aspects of the rollout and the response of existing retailers remain highly uncertain, the experience abroad suggests Amazon's entry will result in significant downward pressure on retail margins.
The response from other retailers abroad have been varied but typically includes some industry consolidation (e.g. mergers/closures), increased efforts to reduce costs (e.g. more effective use of retail space), and a greater focus on developing online sales channels (e.g. through loyalty schemes).
Overall, while the disruption to the retail sector may well be large, many of the macro level effects are likely to be marginal and come through gradually – the peak impact is likely several years away."