State braces for Amazon expedition

THE arrival of e-commerce behemoth Amazon on Australia’s shopping scene is unlikely to decimate retail in Tasmania as doomsayers have warned, says an interstate expert.

The arrival of the US online retail giant has been among the most talked about business ventures coming into the Australian market in years, with predictions its entry could have a bigger impact than Uber on the taxi industry or Airbnb on accommodation.

This month Amazon announced it had secured a lease to open its first “fulfilment centre” in Dandenong with operations set to start next year.

It is then expected to expand to Sydney, Queensland, South Australia, Western Australia and finally Tasmania and the Northern Territory.

Associate Professor Gary Mortimer of the Queensland University of Technology, who has been in Tasmania talking to university students and industry about the impacts of the arrival, said the state’s retailers should not be scared of Amazon’s foray into Australia.

“Tasmania’s retail community is very different to what we see in Sydney. It’s famous for its seafood, it’s famous for its cheeses, its wine and its food,” he said.

“You just have to look at Salamanca Market for an example of that.

“So retail in the Hobart area is very different to what you can get online, so very much consumers who are shopping in Tasmania are looking for the experience.

“They want to go to Richmond or go to Strahan or to Stanley, these are the experiences that they are seeking which is very different to sitting at home online and doing an order.”

But Dr Mortimer said Tasmania’s retailers could not become complacent, with Amazon almost sure to have some form of impact.

“Speed is becoming the new currency and will become so even more,” he said.

“I don’t think retailers can become complacent thinking nothing will change.”

Tasmanian Chamber of Commerce and Industry chief executive Michael Bailey said businesses were already preparing for the impact of Amazon’s arrival.

“Retailers all across Australia and Tasmania have faced a range of competitors over the years,” Mr Bailey said.

“Amazon is coming, they are bound to have some sort of impact, it’s just up to Tasmanian retailers to continue to focus on the things that set them apart.

“And it isn’t just Amazon, businesses here are very much aware of digital disruption and its impacts and are working on strategies.”