Myer (MYR) management promised a “strategy update in due course” yesterday after confirming that it was shutting its store in the Top Ryde shopping centre in Sydney and closing three stand alone trial outlets in Melbourne.
After revealing the sacking of 80 people at head office 10 days ago, the ’strategy’ promised to the market might be a little redundant. That statement in fact promised a strategy update later in the year. Yesterday’s is now merely "in due course”.
It appears Myer management has decided to drip feed the market on changes as they are decided. But some retailing analysts reckon the major statement will involve more store closures and job losses later in the year.
Myer told the ASX yesterday in a short statement that “it would be exiting its store at the Top Ryde City shopping centre in New South Wales”.
Myer CEO and Managing Director Richard Umbers said in the statement "while the everyday focus remains on running the business, work to conclude our strategic review continues, which includes an assessment of the productivity of all assets.
“We have recently undertaken an extensive analysis of our current and future customer base, on a catchment by catchment basis that now informs our decision making,” he said.
MYR 1Y – Myer confirms Top Ryde store to close
The company said that a review of the company’s sales data showed consumers in that area of Sydney were choosing to shop at other Myer outlets in the area (the closest is at Macquarie Shopping Centre, with the next nearest at Chatswood.
"After careful assessment, the decision has been made to close the Myer Top Ryde store in late July 2015. The opportunity to exit at this time has been facilitated by plans underway to redevelop the centre," Mr Umbers said.
Turning to Melbourne the company said that over the 12 months it has been trialling three stand-alone speciality stores (but unnamed) in Melbourne’s northern suburbs.
"These stores stocked Myer Exclusive Brands in Womenswear, Menswear and Childrenswear.
"While significant insights have been gained from the trial, the decision has been made to close these stores at the end of August and to focus on the core Myer business in bricks and mortar and online.
"The focus remains on building relevance with customers, to deliver a more sustainable and more profitable business into the long term. A strategy update will be provided in due course,” the company said.
Myer shares fell 1.3% to $1.48 yesterday.
