Amazon is eyeing space for its first warehouse in Australia after last year quadrupling its office space in Sydney, according to Fairfax.
The US-headquartered online retail giant is reportedly looking for waerhouse sapce, with Goodman Group's A$50m estiate in Oakdale in Sydney's west, a site of interest.
The move could see a shake up to Australia’s retail industry, with a Citi report by analyst Craig Woolford estimating Amazon could take 14 per cent of all online sales, and 1.1 per cent of Australia’s retail sales, worth A$4bn.
The biggest disrupter would be the arrival of Amazon Fresh, its online grocery delivery service, particularly to leading retailer Coles and Woolworths.
'Amazon Fresh would be a disruptive force on the Australian grocery market, but developing the supply chain and dealing with Australia's lower capital city population density makes entry more challenging,” Woolford stated.
'We expect Amazon would initially focus on its more successful general merchandise categories like electronics and toys.'
Earlier this year, Richard Goyder, managing director of Coles’ parent company Wesfarmers, said Australia retailers would need to get more innovative and regulatory barrier so would need to be relaxed, other wise Amazing would “eat all our breakfasts, lunches and dinners”.
