Report: Amazon’s Arrival Will Smash Aussie Retailers (But It’s Great News For Consumers)

Report: Amazon’s Arrival Will Smash Aussie Retailers (But It’s Great News For Consumers)

A new report into the damage Amazon’s mooted arrival on Australian shores will do predicts existing retailers – particularly those who play in the electronics space – could see their earnings slashed by up to 30 per cent.

The report by CITI said Amazon, who only play in the online space, will be able to sell electronics between 15 and 20 per cent cheaper than the the likes of JB Hi-Fi and Harvey Norman.

According to the document, for Aussie bricks and mortar retailers to survive they’d need to cut their prices by at least 10 per cent.

Following CITI’s research it has downgraded its long-term earnings forecast for JB H-Fi by 40 per cent and Harvey Norman’s by 30 per cent. The latter not so reliant on the tech/electronics space.

While another study has revealed Aussies think Amazon’s arrival can’t come soon enough. Monthly searches for anything “Amazon” in Australia have jumped 93 per cent since July, according to data compiled by Hitwise.

Hitwise’s data appears to coincide with CITI’s in that electronics, computers, video games and office supplies are the most searched items by Australians on Amazon. Toys also featured prominently.

“These are savvy shoppers, not browsers,” said Hitwise’s general manager Harley Giles. “They may have done their research elsewhere and gone to Amazon to buy it.”




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