Amazon shake-up looms

Online retailer could drive down prices, analysts say

THE looming arrival of retail behemoth Amazon in Australia is tipped to have a dramatic impact on Top End retail, driving down prices on items including groceries, clothing, electrical and footwear.

Retailers across the country are preparing for huge disruption by the global giant which is expected to arrive in September and could bring hip- pocket relief to households. Australian Retailers’ Association’s chief executive officer, Russell Zimmerman, has warned retailers “there’s no safe product,” and urged them to respond before feeling the full “Amazon Effect”.

“Any retailer who has got their head buried in the sand and think their arrival is not going to affect them has got a concern,’’ he said.

“If you run your own brand name you would probably be considering how you engage with Amazon and how you can sell your product through Amazon. You need to work out how you can work with them rather than beating them because you won’t beat them.”

The US giant is internationally renowned for selling virtually everything that comes to mind and Mr Zimmerman warns that many retail sectors will be hit by cheaper pricing of items including groceries, clothing, electrical and footwear which will be a win for consumers.

Amazon is set to open dis- tribution centres across the country, though is unclear whether those plans include the Territory.

Amazon is also expected to launch an online supermarket Amazon Fresh and this is tipped to have significant impact on Coles, Woolworths and Aldi and see intense competition on grocery items.

AMP chief economist Shane Oliver said their upcoming arrival will put the heat on the national retail market, but he expects retailers, particularly the supermarkets, to be more prepared than they were ahead of Aldi’s arrival.

“When Aldi came to Australia neither Coles nor Woolworths were really prepared for it,” he said. “I think you would say they are being very prepared for (Amazon).