Amazon has partnered with Australian department store operator Myer Holdings to roll out its Amazon Hub parcel pickup points to 21 Myer stores across the country. The click & collect option will be available to Amazon customers as they check out from 9 September and may be extended to more Myer stores before the Christmas season.
Amazon is growing quickly in Australia, as revenues increased by 92% in 2019 and the Amazon Hub service launched at the end of last year. This latest partnership will add some helpful physical distribution points to its network. Expansion is likely, with large-scale hub partnerships already existing in other markets, such as Amazon Counter at Next. Myer meanwhile is seeking to offer more convenience to customers, recently partnering on delivery with Australia Post, and views this latest move as ‘solution led thinking for time poor customers’.
Australia’s ecommerce channel is set for strong growth over the next five years, with compound annual growth rates above 10% through to 2025. By this time, Amazon is projected to become the third largest ecommerce retailer in Australia, having only launched in 2017. As more partnerships emerge, and new consumer touchpoints are generated, brands must also seek to accelerate their ecommerce capabilities to capture a share of this growth. Flexible, agile supply chains will be crucial in this environment.
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