Amazon is ready to take on the world of retail. Recently confirming the launch of its first Amazon-branded grocery store, Australian retailers are feeling threatened by Amazon and are building out on their own digital capabilities.

Woolworths has trailed a Scan & Go checkout system and Coles has teamed up with Microsoft to use artificial intelligence to better the shopping experience for consumers.

These changes indicate an important direction that companies are heading in, in order to stay current they need to adapt to the evolution of technology. Amazon is able to solve the challenge of creating a store in a digital world, and as a result it will obtain 90 percent of retail shares from physical stores.