At least one Myer store is being closed and others are being downsized as the department store chain aims to reverse a slide in sales and profits observed in FY2019.
The retailer is currently clearing stock at its store in Westfield Hornsby, on Sydney’s Upper North Shore, which is due to be closed by January 2020.
It already has closure signs in-store, stating “everything must go” and “nothing held back”. The closure was earmarked back in 2017 when Myer said it would not renew the lease over the store.
“With the lease coming to an end at our Hornsby store, we have some fantastic promotions on offer, that are unique to this store, and encourage customers to visit and take advantage of them,” a spokesperson said.
In its CEO presentation to shareholders published at the end of October, following the release of its FY2019 financial results in September, Myer also renewed its commitment to cutting some 29,000 sq m of floor space across its store network, which includes “space hand backs” at its stores in Cairns (Queensland), Belconnen (ACT) and Emporium (Melbourne’s CBD flagship).
Yet this downsizing could be only a start.
Myer also revealed that is “under active discussion” to find efficiencies across a further 5 to 10 per cent of its gross lettable area, at the same time that it is pursuing a factory-to-customer solution to operate across its online fulfilment and floorstock replenishment.
It comes after the ASX-listed company posted a 3.5 per cent fall in total sales to just under $3 billion ($2,991.8 million) and a fall in operating gross profit of 1.9 per cent to $1.162 billion.
That result was despite Myer shaving 3.1 per cent off its cost of doing business and operating cash flow (before tax and interest) surging by $8 million to $138 million.
Myer’s review of its retail floor space comes weeks after rival David Jones revealed that it would slash the footprint of its Melbourne flagship and sell one of the buildings it currently occupies in the Melbourne CBD.
Adam Zuchetti is the editor of My Business, and has steered the publication’s editorial direction since early 2016.