Amazon may expand to Australia, bad news for JB Hi-Fi and Harvey Norman

A major shake-up is looming in the retail sector as the giant online retailer, Amazon, has its sights set on the Australia market with JB Hi-Fi and Gerry Harvey the ones with the most to fear.

Amazon, called one of the largest “disruptors” for retailers, could generate sales of up to $4 billion in Australia with a focus on electrical items, which would be a direct hit on JB Hi-FI and Gerry Harvey’s Harvey Norman business.

OK so the article is essentially nothing more than stockbrokers Citi predicting a Nostradamus like end of days for JB Hi-Fi and Hardly Normal. Earnings could fall up to 23% for JB and could fall 19% for old-mate Gerry but then Amazon could choose not to open Australian warehouses too.

Interestingly they make no mention of Kogan and the impact to Australia’s current largest online marketplace. I feel sites such as his and others like Peters of Kensington are more likely to be drastically affected should this eventuate.

Whether or not this is turns out to be true or nothing more than an analyst’s wet dream it time will tell but if it means we’d get full support for Amazon’s Echo lineup sooner. Sorry Gerry I’m all for it!

Source: Amazon Australia expansion set to shake up JB Hi-Fi and Harvey Norman

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