Are David Jones and Myer set to become one super department store?
Friday, April 6, 2018/
Department store David Jones is reportedly considering buying troubled competitor Myer as its share price continues to decline.
According to The Australian, advisors are believed to have been engaged by David Jones parent company, South African retailer Woolworths, to consider a possible acquisition of the company.
Despite a bump in department store sales over the past two months, both retailers have faced various levels of strife over the past two years.
Myer’s share price was sitting at 34.5c before the market opened this morning, continuing its downward trajectory since the retailer posted a half-year loss of more than $470 million earlier this year.
David Jones has continued to develop its “fresh food” strategy with promises of new food hall rollouts and food pop-ups, but Woolworths Limited also recently wrote down a $712 million impairment charge against the business.
Sales across the David Jones store network have also been weak over the past year.
The Australian reports that while David Jones has consistently denied interest in buying the Myer, experts have now been engaged to investigate the opportunity.
If an acquisition were to take place, there would be plenty of negotiating of retail leases to do, while Myer shareholder Solomon Lew’s approval would also be key to a buyout offer becoming reality.
Social media mishaps: Why businesses should think twice before cracking jokes online Catriona Pollard CP Communications founder
An ‘opportunity-hunting’ generation: Here's what millennial workers need and want Karen Gately Corporate Dojo founder
Spilling the beans: Why inviting someone to 'grab a coffee' is disingenuous and unnecessary Sue Parker DARE Group founder
The 10 most unemployable job titles on LinkedIn Ian Whitworth Scene Change co-founder
How Emily McWaters manages her Sydney-based business from Kangaroo Island Emily McWaters The Hamper Emporium chief
Why 'Orwellian' performance monitoring is crucial to building an ethical company culture Michael Kodari Kodari Securities chief