Myer to close more stores as profits plunge

Published: 14 September 2017

Myer

Myer is set to close more stores after it revealed an 80 percent plunge in profits.

The department store chain says the company’s net profit slumped from $60.6 million in 2016 to $11.9 million this year.

It is the weakest result since 2009.

Myer’s sales targets have been marred by Topshop going into administration in May, consequently ruling out Myer’s $6.8million stake in the franchise, and the $10.9 million slump of its fashion brand sass & bide.

"The financial result isn't where we want it to be," chief executive Richard Umbers said.

Stores in Colonnades in Adelaide, Belconnen in Canberra, and Hornsby in northern Sydney are set to closed down. 

Myer is currently two years into its five-year “New Myer” turnaround plan, which strategizes to spend $600 million improving service, productivity, its online platform and product offering. 

There are now rumours the plan could be revised on a strategy day in November.

Two separate trends are being blamed for Myer’s downfall: consumers’ hunt for cheaper alternatives, such as department store Kmart, whose total revenue on the rise; and the rapid growth of online shopping.