Local retailers share prices drop following Amazon Australia launch

Alison Banney 5 December 2017 NEWS

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Woolworths, Kogan.com, Bunnings and JB Hi-Fi share prices open lower today following Amazon's launch this morning.

Local retailers are taking a mild hit to their share prices this morning following retail giant Amazon's much-anticipated launch in Australia. Amazon launched this morning with dozens of retail options spanning electronics, clothes and beauty. While it's good news for Australian shoppers looking to snag a bargain online before Christmas, some local retailers have seen their share prices lowered following the launch.

One of the hardest hit was homewares retailer Adairs which closed at $1.80 yesterday and opened 5.5% lower this morning at $1.70 a share. Appliance retailer Godfreys also saw its share price shed, opening at $0.42 this morning, 4.5% lower than its close price yesterday.

Local supermarket giants Woolworths and Coles (owned by Wesfarmers) both felt the impact of Amazon's launch, shedding 1.11% and 0.90% from their share prices respectively overnight. Woolworths closed yesterday at $26.85 and opened this morning at $26.55 a share, but climbed back up to $26.61 by 11am. Wesfarmers closed at $43.92 yesterday and opened at $43.51 this morning, and was still sitting at this price at 11am.

Bunnings followed a similar pattern, with its share price down 0.6% when it opened this morning at $3.18, but quickly reached $3.19 an hour later. Prices may have dropped as shareholders panicked this morning following Amazon's launch, but the majority began to stablise again shortly after which is a good sign for local retailers.

Interestingly, some Australian retailers actually saw their share prices increase following Amazon's launch. Furniture retailer Nick Scali closed at $6.56 yesterday, before reaching $6.61 at 11am this morning. Travel and adventure store Kathmandu also saw its share price increase, from $2.16 at close yesterday to $2.17 by 11am today.

Major Australian retailers share prices following Amazon's launch

Retailer4 December share price closed5 December share price open5 December share price 11:00am
Woolworths Limited (WOW)AUD$26.85AUD$26.55AUD$26.61
Bunnings (BWP)AUD$3.20AUD$3.18AUD$3.19
Myer (MYR)AUD$0.77AUD$0.77AUD$0.77
Godfreys (GFY)AUD$0.44AUD$0.42AUD$0.42
Westfarmers (WES)AUD$43.92AUD$43.51AUD$43.51
JB Hi-Fi (JBH)AUD$24.10AUD$23.99AUD$23.99
Harvey Norman (HVN)AUD$4.00AUD$3.96AUD$3.97
Adairs (ADH)AUD$1.80AUD$1.70AUD$1.71
AMA Group (AMA)AUD$0.96AUD$0.97AUD$0.96
Automative Holdings Group (AHG)AUD$3.68AUD$3.68AUD$3.66
Breville Group (BRG)AUD$13.17AUD$13.04AUD$13.00
Kogan.com (KGN)AUD$4.30AUD$4.30AUD$4.29
Kathmandu (KMD)AUD$2.16AUD$2.16AUD$2.17
Nick Scali (NCK)AUD$6.56AUD$6.55AUD$6.61
The Reject Shop (TRS)AUD$5.43AUD$5.43AUD$5.41

For the full scoop on Amazon's arrival, check out our comprehensive guide.

Latest Amazon Australia headlines

Image:Shutterstock

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