Woolworths to open 'dark stores' in battle against Amazon
Woolworths has announced it will open four new ‘dark stores’ in a bid to battle Amazon, as one of the world’s biggest online retailers gets set to launch in Australia.
The dark stores are a stark departure from your normally Woolies outlet, closed to the regular public and used solely to pack and ship orders to online customers.
Woolies chairman Gordon Cairns told the company’s annual general meeting on Thursday the stores would be up and running by the end of the year, and issued a grim warning for suppliers who are looking to sell their products with Amazon.
“If they go onto Amazon, then Amazon cuts the prices substantially,” Mr Cairns said. “What that forces other retailers to do is to reflect on whether they should be stocking the brand if they can’t do it and make money.
“They can end up cutting their own throat. Before they step into the breach, they should perhaps consider what the long-term ramifications are,” he said.
Woolies chief executive Brad Banducci said they would be keeping a close eye on the price of Amazon products that are also stocked by the supermarket.
“We track pricing against all of our competitors… making sure our customers get a good deal every time they shop at Woolworths, so it’ll be part of our price tracking no doubt,” Mr Banducci said.
What are your thoughts?