Jun 24, 2018 Last Updated 1:01 PM, Jun 14, 2018

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Amazon to arrive in Australian retail market for Christmas – Citi analysts

Amazon España por dentro San Fernando de HenaresAUSbnAusBN - Analysts at global banking group Citi have suggested that Amazon could launch in Australia within two months, in a blow to several existing major retailers in the saturated national retail market.

The US retailing giant confirmed it would be arriving in Australia in April after purchasing a warehouse in Melbourne and appointing German executive Rocco Braeuniger as country manager for Australia.

Retail analyst at Citi Brian Raymond confirmed that the company has set buying terms and first orders have been placed with suppliers in recent weeks.

In a further statement, Citi said it expects Amazon’s prices to be competitive at first, as it will not have a meaningful advantage in two of their three key pillars, range and delivery, which will evolve later over time.

“This increases near-term gross margin risks for retailers as price will be Amazon’s key lever,” said Citi.

Current national retailers expected to lose out if Amazon does arrive before Christmas include JB Hi-Fi, Harvey Norman and Myer.

@AusBNOnline

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