Why Woolies and Coles should fear Costco, not Amazon

 In Australia, Costco, NewZealand
Amazon’s CEO, Jeff Bezos, recently overtook master investor Warren Buffett on the "richest person in the world" list, to now be second only to Bill Gates.

To be fair to Buffett (not that he cares), he’s slipped a few places because he’s given billions away to charity. Regardless, Bezos’ rise – on the back of Amazon’s astonishing and continued success – is extraordinary. So, when reports surface that Amazon is apparently due in Australia by the end of next year, people take notice.

Humans notice the big, the new and the flashy. And while Amazon will undoubtedly make a splash when it arrives – and thereafter – one of the most significant challenges is already here, in the form of Costco.

Yes, Aldi gets all the press in the grocery sector, and for good reason, but Woolies and Coles should, and I’m sure do, have their eyes firmly on the US-based warehouse store chain, Costco.

Australian investors who own shares in Woolworths or Coles’ owner Wesfarmers need to pay attention too. Sydney Morning Herald – Read more…

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