Sir lastnail wrote on Dec 3
rd, 2016 at 9:40am:
Poor old Gerry Harvey will have a hissy fit
LOL
Old Gerry always wanted a level playing field and now he has got one
http://www.smh.com.au/business/retail/disruptor-amazon-set-to-shake-up-jb-hifi-a... Quote:Amazon Australia expansion set to shake up JB Hi-Fi and Harvey Norman
A major shake-up is looming in the retail sector as the giant online retailer Amazon has its sights set on the Australian market with JB Hi-Fi and Harvey Norman the ones with the most to fear.
Amazon, called one of the largest "disruptors" for retailers, could generate sales of up to $4 billion in Australia with a focus on electrical items, which would be a direct hit on JB Hi-FI and Gerry Harvey's Harvey Norman business.
Brokers have estimated the most impacted retailer is likely to be JB Hi-Fi whose earnings could fall by as much as 23 per cent, followed by a 19 per cent fall in Harvey Norman's earnings.
JB Hi-Fi's sales could fall as much as 6 per cent if Amazon enters this market. There could be about a 2 per cent impact on sales for Myer and Premier Investments because they sell their own merchandise and more Australian-centric brands, retail analysts at stockbroking firm Citi have said.
Other sectors in the firing line are books and other media, sports goods, and clothing and apparel. Toys, shoes, car parts and office supplies are also in the mix.
Fresh food is another sector that is expecting a tough time from Amazon.
It has launched in the US and it could be a concept for Australia, down the track.
Wesfarmers' chief executive Richard Goyder warned earlier this year that Amazon would "eat all our breakfasts, lunches and dinners" unless Australian retailers became more innovative and barriers to competition were removed.
"The expansion beyond its home state of Washington began in 2013 and, in 2016, the company expanded to parts of London," Citi analyst Craig Woolford said.
market, but developing the supply chain and dealing with Australia's lower capital city population density makes entry more challenging.
"We expect Amazon would initially focus on its more successful general merchandise categories like electronics and toys."
While Amazon is no mystery to local shoppers, it is yet to have a physical presence in the country, but that could be changing, according to the Citi report.
The Amazon Web Services division has an office in Sydney's 2 Park Street, but the group has no warehouses. It looked at possible sites in 2014, but no decision was made to lease any property.
In a 40-page, comprehensive report, Mr Woolford said Australia was one of three lucrative markets in which Amazon had only a digital offering and "ticks all the boxes" for the retailer.
Australians already spend $500 million to $700 million on all Amazon websites. The precise figure is hard to pin down, but Google Trends of web traffic show greater usage of Amazon by Australians than of major Australian retailers.
"Its full product offer is likely to follow, given Australia has all the right ingredients and will take inspiration from its US fulfillment solutions to deal with the distances in Australia," Mr Woolford said.....
It will never be a 'level playing field' until everyone in the world is on the same income structure and living standards....
If some mad Stalinist came out and said that everyone on this planet should be on the same wage,and receive from the State the same sustenance, all these 'global economists' would be up in arms over the abuse of capitalism by communism....
NOBODY wants a genuinely level playing field - what nations/economies want is an advantage... and since the 'global economy' has no national boundaries (like Islamism) and is reposed in the hands of a very few who hide in tax havens .... there is no longer any advantage for nations, and they are falling behind..... unless you wish to declare a separate and new nation of 'global economists'.......... and offer them status as a Nation... but without any international responsibility......
All these global parasites are doing is to reap benefit while there is no balance between economies and while ALL economies are in confusion over what to do - a new form of economic warfare and capitalism gone mad (again).... and in forcing ALL economies onto the same playing field, they are developing disadvantage for many to benefit the few ... and there is only one outcome from that...
Therein lies the seeds of civil and global war........ don't laugh... it's coming.... and soon....
Absolutely stoopid is as stoopid does......
Thank you all for coming to this lecture and open forum at Grappler University - the FREE University and the Real U - and I take my fond farewell and head for bed.
.
. reading up on George McGovern, US Democratic Candidate v Nixon...... and his WW II record.... night!
Forum
Pages: 1
Amazon to take on Australian retailers (Read 562 times)
