Mar 25, 2019
Australia's Myer begins cull of "unprofitable" products
Mar 25, 2019
The decision, which will apply to the 16 department stores that stocked Apple products as well as online sales, comes as the department store operator restructures to better compete with online retailers. While Myer failed to flag other departing items, it is expected that the retailer will announce more culls in 2019.
Myer, which was founded on the back of the country’s gold rush more than a century ago, is cutting costs and boosting its online presence which allowed it to swing into a modest first half profit in January.
“Myer has made it clear that it will not chase unprofitable sales and has made this decision as we could not reach acceptable commercial terms that were in the best interests of the company and shareholders,” a spokesman said in an emailed comment to Reuters.
“This decision is also about ensuring space in our stores is utilized in the most productive and effective way for the company. We thank Apple for the positive partnership we have had over many years.”
Myer’s net profit came in at A$38.4 million ($27.20 million) for the six months to Jan. 26, compared to a loss of A$476.2 million for the same period a year earlier.
Myer has 61 stores, mostly across the eastern part of the country. Stores are usually in areas of high foot traffic in major metropolitan shopping centers as well as in city centers.
© Thomson Reuters 2021 All rights reserved.