During the Christmas holidays I love spending time with family. Talking over lunch about the year past and the year ahead. Receiving gifts isn’t bad either.
But the part I dread is actually getting the gifts for others. It’s not that I don’t want to show my appreciation. It’s the time and energy spent in a shopping mall, surrounded by deal-hungry shoppers.
I’d rather just shop online and be done with it.
Lucky for people like me, Amazon looks to be arriving just in time.
Amazon Launch is Almost Here
As reported by the Australian Financial Review, Amazon is looking to open in Australia this week:
‘The US online giant could be trading within 48 hours with the Amazon Marketplace team sending an email to sellers on Tuesday afternoon saying they will begin a testing phase on Thursday, signing off with: “Let’s make history!”
‘Products from the AmazonBasics white-label range as well as HP computer products have also appeared briefly before the pages were hidden again. All those item pages have now also been removed from public view.
‘The company’s fulfilment centre in Dandenong South in outer Melbourne has been preparing with staff on since last month.’
Amazon’s Impact on Aussie Retail
Investors will also get the opportunity to see the impact of Amazon on Australian retail. No doubt you’ve heard the predictions of Amazon destroying our retail industry. They’ll force brick-and-mortar retailers out of business. And cause havoc for shopping mall owners, who are losing customers by the dozen.
Of course, I disagree with the predictions. While Aussies are increasing their online shopping habits, a large majority still prefer an in-store experience.
Christmas trading will be the perfect test for Amazon to prove its might. Yet as I said, I don’t believe the results will be the least bit surprising.
Junior Analyst, Markets & Money
PS: Amazon’s arrival and its effects on retail may be bad for commercial real estate. But Aussie property prices continue to defy gravity. Those who have tried to predict the top have been wrong thus far. And that’s because property prices still have a long runway of growth ahead.
If you want to read more about long-term booming property, check out our Markets & Money report, ‘Why Australian Property Is on the Verge of a Decade Long Boom’.