Expectations of Amazon’s greatness in Australia have been overstated, Gerry Harvey says

THEY promised to be up and running here by 2018 and dominate the market but online retailer Amazon hasn’t even bought a block of land. Are the expectations of greatness overstated?

The market is buzzing about Amazon’s plan to launch in Australia ... but where are they? Picture: AFP

ASK almost any market analyst about Amazon’s much-touted foray into the Australian market and they’ll probably start jumping for joy.

But the online tech outfit is proving to be slow off the mark, with signs of delays in establishing its presence on our shores.

That’s the analysis of outspoken retail billionaire Gerry Harvey, who believes predictions of greatness for Amazon have been overstated.

“Amazon to my knowledge haven’t even bought a block of land in Australia,” the Harvey Norman chairman told Fairfax Media.

Amazon set for greatness in Australia? Retail billionaire Gerry Harvey isn’t convinced. Picture: AAP

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“And I read that Amazon is going to be fully operational in late 2018.

“Let’s assume I buy a block of land tomorrow. I’ve got to buy it, pay for it, put in a development application. If that happens within three years, that’s very quick.”

Macquarie has forecast that Amazon would nab a $14 billion chunk of the country’s retail spending by 2025 and Deloitte tipped it would “disrupt almost every retail category”.

Analysts have been a bit quick to claim greatness when it comes to Amazon, Gerry Harvey says. Picture: AP

CBRE has been charged with finding land for Amazon in Australia. It wants at least four large warehouses and four smaller facilities.

Even if that was achieved in time, Harvey said he was sceptical about how the company could hope to expand.

“For their model to work they would need 50 warehouses in Australia. Start with two — one in Sydney and one in Melbourne — and then it’s how do you deliver? That’s the best-case scenario.”