Many well know ASX-listed Australian retailers have been downgraded by Morgan Stanley after they completed a deep analysis on the impact Amazon will have once they establish themselves in Australia.
Morgan Stanley a global investment bank has forecast that Amazon will generate $12 billion of sales by 2026 with five distribution centres established across Sydney, Melbourne and Brisbane and have a profound impact on the retailing industry in the whole of Australia.
Amazon announced in April 2017 that they will be coming into Australia, they already have over 1000 employees now established in Australia and are looking for more to structure the fast delivery online giant.
A significant portion of ebay’s business is expected to be affected to making them one of the biggest losers, department stores such as Myer looks to be heavily affected where there clothing line where Amazon is very successful.
Morgan Stanley’s preferred consumer stocks are Domino’s Pizza and Treasury Wines. Also in a better position are JB Hi-Fi and Super Retail which are largely unaffected by Amazon’s entry in Australia and generate a large portion of earnings from offshore.
Original Source: Business Insider