Which retailers will survive after Amazon hits our shores?
How much will Amazon (NASDAQ: AMZN) hurt our retailers when its local website launches later this year? Quite a lot, it seems, if the plunging share price of some businesses is anything to go by. But it’s not all doom and gloom. Some retailers should continue to thrive.
Roger Montgomery is the Founder and Chairman of Montgomery Investment Management. Roger has over three decades of experience in funds management and related activities, including equities analysis, equity and derivatives strategy, trading and stockbroking. Prior to establishing Montgomery, Roger held positions at Ord Minnett Jardine Fleming, BT (Australia) Limited and Merrill Lynch.
This post was contributed by a representative of Montgomery Investment Management Pty Limited (AFSL No. 354564). The principal purpose of this post is to provide factual information and not provide financial product advice. Additionally, the information provided is not intended to provide any recommendation or opinion about any financial product. Any commentary and statements of opinion however may contain general advice only that is prepared without taking into account your personal objectives, financial circumstances or needs. Because of this, before acting on any of the information provided, you should always consider its appropriateness in light of your personal objectives, financial circumstances and needs and should consider seeking independent advice from a financial advisor if necessary before making any decisions. This post specifically excludes personal advice.
Martin
:
I think you are being overly pessimistic about JBH. Their cost of doing business is a miserly 15%, which even puts most online only retailers to shame. Suppliers want their products on JB’s shelves. People still like to touch and experience products first hand before buying and the suppliers know JB offers them this exposure. The other huge benefit that a bricks and mortar presence provides is when it comes to warranties/returns. Yes, they will loose a bit of revenue to Amazon and maybe a little margin but their other existing competitors (with much higher costs of doing business) stand to loose more and this will actually provide a counter intuitive benefit to JBH.
Roger Montgomery
:
Hi Martin, You took away a more negative impression that we had intended to portray. That’s why I wrote “Remember, it’s when fear is greatest that opportunities abound”