Kmart: We can survive Amazon

KMART boss Ian Bailey says he expects Amazon to shake up Australia’s retail landscape when it sets up its local presence but he is confident his business can hold its own against the global online giant.

“I see them as another competitor coming in that’s going to fragment the market further,” Mr Bailey, managing director of the discount department store chain, told a business lunch in Sydney.

“Undoubtedly, all businesses will lose some number of customers to Amazon because they are probably going to get a reasonable start.” Already dealing with soft consumer spending and increasing competition from overseas businesses, the Australian retail sector is now dealing with the financial implications of Amazon’s impending arrival.

Even if Amazon’s local operations become a $5 billion business in five years, Mr Bailey said, that would still be a tiny proportion of the Australian retail market.