Amazon On The Hunt For Retail Opportunity On Australian Soil

After years of speculation that it would begin operating in Australia, global online shopping giant Amazon has confirmed that its business will settle on Australians shores.

Industrial property agents reportedly revealed to Fairfax Media that the company signed a lease deal for a large purpose-built warehouse at the Goodman Group’s $50 million Oakdale Industrial Estate, on Old Wallgrove Road, at Sydney’s Eastern Creek.

[Related article: Amazon Plans To Enter Market, Retailers Expect Shake-Up]

The Sydney Morning Herald said Goodman’s Chief Executive Greg Goodman declined to comment on any specific deals by Amazon in Australia.

“Amazon Web Services launched an Australian region in 2012, we launched a Kindle store on amazon.com.au in 2013 and we now have almost 1,000 employees in the country,” the company told The Australian.

“The next step is to bring a retail offering to Australia, and we are making those plans now.”

“We are excited to bring thousands of new jobs to Australia, millions of dollars in additional investment, and to empower small Australian businesses through Amazon Marketplace,” Amazon told The Australian.

“We are optimistic that by focusing on the things we believe customers value most — low prices, vast selection and fast delivery — over time we’ll earn the business of Australian customers.”

According to the Sydney Morning Herald, the estate is in two parts, Oakdale Central, which is mostly leased to DHL, and Oakdale South, which is large enough to accommodate an Amazon purpose-built “fulfilment centre”.

These are automated warehouses, usually about 80,000 square metres-plus, from which Amazon processes orders.

It is early days for the south sector of Oakdale, but agents said Goodman had the capacity and expertise to start work when Amazon made a decision. Goodman is Amazon’s main landlord globally.

Oakdale Industrial Estate is a joint-venture site between Goodman and Brickworks which comprises four DHL-occupied, purpose-built warehouse facilities, with around 17 hectares of land available for development.

The Australian reported that Amazon now accounts for $1billion of Australia’s $300 billion annual retail sales, and analysts at Morgan Stanley have dubbed Amazon the “country killer”, warning its retail clients: “While Amazon might take time to build up momentum in this country, it hangs like the sword of Damocles over corporate Australia.”

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