Amazon set to lead Australian online market as rival pulls IPO

Sydney

EVEN before Amazon sets up shop in Australia, the online giant is hurting its biggest rivals.

Wesfarmers Ltd, the supermarkets-to-hardware conglomerate that's Australia's biggest private employer, on Wednesday scrapped a A$1.5 billion (S$1.5 billion) initial public offering (IPO) of its office-supplies business. With analysts almost halving profit forecasts for some local retailers before Amazon.com Inc's arrival, Wesfarmers couldn't get the price it wanted for Officeworks.

Amazon has become Australia's most anticipated new entrant of the internet era. The Seattle-based company ended months of speculation in April when it unveiled plans to launch retail operations in Australia, appealing to small suppliers to sell their goods online alongside Amazon products. Amazon didn't say when i…