For the past two or three decades we have been told that globalisation and free trade will speed up the pace of capitalism and deliver innovation and efficiency to the benefit of all. Now we have a classic case study unfolding before our eyes: the changing structure of the Australian retail industry. Change of course brings losers as well as winners: mega-retailers like Harvey Norman and Myer will themselves be victims of the same kind of ‘creative destruction’ that allowed them to build market share at the expense of small businesses. As for the winners, these will undoubtedly be retailers with a strong online presence.