Prices Will Really Be Down When Amazon Launches In Australia

Prices Will Really Be Down When Amazon Launches In Australia

First it was news of Aldi’s chief rival Lidl planning to come to Australia, now reports in Fairfax press indicate Amazon is set to launch food and grocery stores in Australia within the next two years.

A report in the Australian Financial Review last week said “[Amazon] will be dropping distribution centres and performance centres in every state next year,” citing Watermark Funds Management chief investment officer Justin Braitling who said he had received a special briefing this week from Amazon about its Australian rollout.

“They will be doing general merchandise and they will be doing fresh as well.

“They will also be putting physical stores on the ground which I don’t think anyone knows about. These will mainly be in regional areas because fulfilment is a lot harder in regional areas than in the cities.

“We spoke to the guy rolling out Amazon’s business here in Australia and in his words: ‘We are going to destroy the retail environment in Australia.’”

Today, a report in the Sydney Morning Herald said the first stores could be set up within two years.

“First, Amazon is expected to launch an Australian version of its Prime Now program, which provides free shipping to members on a huge range of products, ranging from groceries to hot meals.

When the retail giant is comfortable with its technology, distribution network and supplier deals, Amazon is then expected to launch Amazon Fresh, its online grocery delivery service that recently launched in the UK.

Amazon Fresh in the US stocks more than 500,000 products, compared with an average grocery retailer in Australia which stocks tens of thousands of products. Aldi sells about 1,350 grocery products.”

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