Amazon’s arrival in Australia has become a greater concern to domestic retailers after the online giant revealed plans to buy upmarket US grocery chain Whole Foods.
Amazon has not announced that it will open Whole Food stores in Australia, but investors are assuming the worst. Many believe that the acquisition will help Amazon disrupt the Australian supermarket landscape.
Two main supermarket groups – Woolworths and Wesfarmers-owned Coles, currently duopolies the Australian supermarket sector. Previous to Amazon’s recent news, the industry was thought to be relatively unaffected. The Whole Foods deal will prompt a reassessment of this view.
The Australian consumer staples sector dropped 1-.3 percent on Monday, compared to a 0.3 percent gain for the S&P/ASX 200 benchmark.
Source: [Financial Times]