Local retailers share prices drop following Amazon Australia launch
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
|Retailer||4 December share price closed||5 December share price open||5 December share price 11:00am|
|Woolworths Limited (WOW)||AUD$26.85||AUD$26.55||AUD$26.61|
|JB Hi-Fi (JBH)||AUD$24.10||AUD$23.99||AUD$23.99|
|Harvey Norman (HVN)||AUD$4.00||AUD$3.96||AUD$3.97|
|AMA Group (AMA)||AUD$0.96||AUD$0.97||AUD$0.96|
|Automative Holdings Group (AHG)||AUD$3.68||AUD$3.68||AUD$3.66|
|Breville Group (BRG)||AUD$13.17||AUD$13.04||AUD$13.00|
|Nick Scali (NCK)||AUD$6.56||AUD$6.55||AUD$6.61|
|The Reject Shop (TRS)||AUD$5.43||AUD$5.43||AUD$5.41|
For the full scoop on Amazon's arrival, check out our comprehensive guide.