Australian retail forecast
Inside Retail reported on Access Economics’ forecast for 2018/19, which expects a mild increase in the rate of retail sales growth, from 2.4% this year to 2.6% the next year. What interested us more was the comment that “pureplay competition is heating up quickly”. We have predicted earlier that Amazon’s arrival in Australia would have a significant impact, but predominantly in the e-commerce space. This was based on the assessment that the actual sales drift from brick and mortar to online had mostly already happened prior to Amazon’s arrival. Given Amazon’s fierce competitiveness in e-commerce and its bottomless coffers, we expect them to make an even bigger dent in the pureplay space in the future.