Amazon Says It Will Bring 'Retail Offering' To Australia
20 April 2017 - 9:51AM
Dow Jones News
By Mike Cherney
SYDNEY--E-commerce giant Amazon.com Inc. (AMZN) plans to launch
a "retail offering" in Australia, posing a challenge to some
Australian retailers that have been already been struggling to grow
sales.
The confirmation from Amazon on Thursday ends months of
speculation among investors over whether the company would fully
launch in the Australian market. The company already has a presence
in Australia, setting up Amazon Web Services in 2012 and its Kindle
store in 2013.
"The next step is to bring a retail offering to Australia, and
we are making those plans now," Amazon said in a statement, adding
that it already has nearly 1,000 employees in the country. The
company said it would bring thousands of new jobs to Australia and
millions of dollars in additional investment.
Amazon will also bring its marketplace for third-party sellers
to Australia. It placed a banner ad on its Australian website
saying that Amazon Marketplace would be coming soon.
"We are optimistic that by focusing on the things we believe
customers value most - low prices, vast selection, and fast
delivery - over time we'll earn the business of Australian
customers," Amazon said.
Amazon didn't offer any specific timing for the rollout.
A report last August from analysts at Citi said Amazon could
have a big impact on Australian retailers. It said electronics
retailers would be hardest hit, estimating that JB Hi-Fi Ltd.
(JBH.AU) could ultimately have earnings fall as much as 23%, while
competitor Harvey Norman Holdings Ltd. (HVN.AU) could see earnings
fall 19%. Department-store chain Myer Holdings Ltd. (MYR.AU) could
have earnings fall 18%.
Other Australian retailers that could suffer include Premier
Investments Ltd. (PMV.AU), Super Retail Group Ltd. (SUL.AU) and RCG
Corp. (RCG.AU), Citi said.
Amazon would also compete with eBay Inc. (EBAY), which already
runs an online marketplace for Australian consumers.
-Write to Mike Cherney at mike.cherney@wsj.com
(END) Dow Jones Newswires
April 19, 2017 19:36 ET (23:36 GMT)
Copyright (c) 2017 Dow Jones & Company, Inc.
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