The Myer family is looking at a host of acquisitions that could include online businesses to assist their retail empire.
Myer family managing director Graeme Sinclair says the company was on the acquisition path, looking for companies that had more than $10 million revenue, had a strong brand and had a history, but that needed capital to expand. “We have looked at stationary, games, cosmetics… we are interested in businesses that are not in a hugely competitive sector, although that should not rule good businesses out.”
He says they are interested in businesses with products that could be sold through the Myer department store but also in a wide range of unrelated businesses. “We are probably more interested in profit than revenue.”
Australian retailers have been criticised for their lack of adaption to the internet with the leading local online retail businesses prefering practicality and cost-effectiveness over innovation and cutting-edge web experiences.
However Sinclair pointed out the problem is getting the distribution model right in a country with a small population. Online distribution works well for the services industry, but apart from books and DVDs it is more problematic for products. He admits overseas department stores have done it better, but says the Myer family is continuing to monitor new companies in this space.
Yesterday the Myer family announced it was buying the retail business of Australian Geographic from Archer Capital.