Amazon is planning to build giant warehouses in Sydney and Melbourne as online shopping demand surges during the coronavirus pandemic, reports suggest.
The online retail giant entered the Australian market three years ago and slowly grew in popularity, with latest filed accounts revealing the revenues from its Australian business almost doubled in 2019.
Amazon’s success in Australia is expected to be accelerated even further as the global health crisis continues, as shoppers increasingly rely on purchasing goods online.
Footfall to Australia’s traditional malls and shops has already plummeted, with shopping districts emptied during the pandemic lockdown and customers finding better deals online.
Australian Financial Review on Thursday reported Amazon has partnered with Goodman Group to create a giant centre at its Oakdale West Estate in Kemps Creek, western Sydney.
Amazon is planning to build giant warehouses in Sydney and Melbourne, according to reports, in the latest sign it plans to dominate the market
Pictured: A cleaner walks through a deserted outlet shopping centre in Brisbane during the coronavirus pandemic
The joint venture with the industrial property giant is understood to have been approved in April.
An Amazon spokeswoman declined to comment on ‘speculations or our future plans’.
Industry sources have claimed Amazon was the natural occupant of the building, which is the size of about 27 football fields across multiple floors.
Multiple industry sources also said the retailer is seeking up to 80,000 square metres of warehouse space in Melbourne.
In a separate stock exchange filing, Australia’s Brickworks Ltd said it was in ‘advanced discussions’ with a customer for a warehouse development near Sydney through a 50-50 joint venture with industrial property giant Goodman Group.
Brickworks, which has an industrial property division, did not name the ‘major client’.
CEO Lindsay Partridge told Reuters in an interview Brickworks’ industrial property business has been doing well with rental receipts ‘still coming in strongly’.
‘We have the Coles warehouse which has been announced to build and we are in advanced discussion with another major client,’ he said.
AFR on Thursday reported Amazon partnered with Goodman Group on a huge centre at its Oakdale West Estate in Kemps Creek, western Sydney (stock image)
Pictured: Nespresso workers wear face masks at the flagship store in Sydney’s CBD
Dropping like FLIES: Some of Australia’s recent retail casualties
2016: Dick Smith, Masters hardware, Payless Shoes
2017: Topshop Australia
2018: Avon, Espirit, Toys ‘R’ Us, Max Brenner, Roger David
2019: Ed Harry, Diana Ferrari, Napoleon Perdis, Ziera, Bardot, Harris Scarfe
2020: Jeans West , Collete Hayman, EB Games, Co-op bookstore
When asked if he was referring to Amazon, Mr Partridge said ‘that’s the speculation.’
Amazon’s reported expansion plans come on the back of surging online sales as consumers shift to e-tailing due to the COVID-19 pandemic.
Australia Post, on the front line of huge changes to consumer behaviour, previously revealed online orders had incresed by 80 per cent during the pandemic.
Just two weeks ago, Amazon announced the opening of its first Queensland fulfillment centre in Brisbane later this year.
The company currently has three centres in Australia, based in Sydney, Melbourne and Perth.
Amazon’s Australian online store almost doubled from $292million in 2018 to $562million in 2019, accounts filed to Australian Securities & Investments Commission revealed.
An increasing number of suburban malls across Australia are empty as customers look online for better deals.
Pictured: Shoppers slowly return to Sydney’s George Street during the coronavirus pandemic