Amazon's arrival could be bad news for Dutch shops, credit insurer says
The arrival of Amazon in the Netherlands can mean more bankruptcies in the Dutch retail landscape, credit insurer Atradius said in a forecast on Wednesday. The American online giant's appearance in the Dutch market will put extra price pressure on retailers, meaning bad news for the weaker players, said Edwin Kuhlma, head of risk management at Atradius Nederland, NU.nl reports.
"Parties that are now well positioned and have sufficient financial strength will be best placed to face this competition," Kuhlma said. But it may well be the downfall for companies who can't absorb setbacks.
The Netherlands already has a difficult retail climate, he said. Last year Hudon's Bay, CoolCat, Intertoys, and Op=Op Voordeelshop, among many others, all filed for bankruptcy. Artradius, which insures parties that deliver products to retailers against the risk that customers don't pay for the goods, saw a 17.1 percent increase in non-payment damage claims last year, mainly due to the large number of store bankruptcies.
The exact date on which Amazon will open its digital doors in the Netherlands, is not yet known. So far thousands of suppliers have signed up to sell their products through the digital platform, according to NU.nl.
