Australia, insurance, car, home, live, holidays

The owner of Myer rival David Jones,South African retailer Woolworths Holdings,is reportedlylooking to offload the business. Meanwhile,years on from his first pursuit of the company,retail veteran Solomon Lew has been gradually increasing his stake in Myer through Premier Investments,and plans to put up former Myer Grace Bros. boss Terrence McCartney as a director nominee at Myer’s annual general meeting in November.

Asked about the move to appoint McCartney to the board,King said he would leave the issue to investors. “Whoever the shareholders want to appoint,let the shareholders decide,” he said.

Myer previewed its earnings back in July,prompting the stock to jump. Shares fell throughout Thursday’s session after the formal presentation of results before finishing flat at 63.5 cents.

The department store has prioritised online sales in recent years and has made strong progress throughout the pandemic. After a 34 per cent increase in 2022,digital transactions now make up 24 per cent of overall sales.

King highlighted that Myer has been able to outpace the broader retail sector with its online growth,but noted its store footprint would continue to give it an edge over online-only retailers as digital spending slows down.

“I think clearly pure play[online only retail] has slowed down and that’s because they don’t have stores,” he said. “If you are a one-channel wonder,you are vulnerable when you’re not in a pandemic or locked down.”

In a call with investors on Thursday morning,King said the company’s digital growth had seen it become one of the largest general merchandise retailers in the country.

While expanding online,the company has closed some of its bricks and mortar department stores and reduced its total floor space by almost 10 per cent over the past four years to contain costs.

But King says reports of the death of department stores have been premature. The in-store experience has always been one of Myer’s main drawcards,and will be key for the business over the festive trading period even if Australian consumer spending slows down,he maintains.

“Christmas has always been a strong suit for Myer,” he said. “I think for us,we’re cautious,but we’re confident that the proposition[of products on offer] is aspirational and affordable for our customers.”

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