The new definition of a retailer, and why Coles and Woolworths should worry

The biggest thing on the radar of Woolworths and Coles isn’t Aldi, it’s Amazon. Richard Goyder said so in his address to the Retailers Leaders forum some weeks ago: “Amazon… will eat all our breakfasts, lunches and dinners.” But why – other than the obvious answers of size, speed, and success? Should they be scared of Amazon? It doesn’t have a lot to do with networks or the internet – the answer isn’t that obvious. Increasingly, the success of the really big platforms and the slow growth of the remainder boils down to simple logistics – the ability of Amazon to get its product to the customer within 48 hours. The knowledge of distribution and logistics is something these companies have been building up over two decades and spending billions of dollars on. Why is this so important? Because it’s the Trojan horse for something much larger, which is domination of the largest share of retail spending globally. And that is what is focusing Coles and Woolworths. Read more here (VIEW LINK)