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.