Online Shopping Causes Myer to Close Stores
Online shopping in Australia is changing the game of retail, and even traditional megastores like Myer are feeling the pressure. Discover how the giant Myer chain is revitalising their business to compete with emerging online stores.
The rapid growth of Australians doing their shopping online has caused one of the country's leading department store operators, Myer, to close some brick and mortar stores. Myer recently announced that they plan to close a total of 4 stores in the states of Victoria and in NSW, and downsize some other outlet stores. The move is part of a strategic shift on the part of Myer to adapt their business model to the advent of e-commerce in Australia.
Myer also cites a two-speed economy as a reason for downsizing some of their stores. Other retailers may follow suit depending on the finalised results of the holiday season. For example, the owner of Portmans is also reviewing their strategy and the outcome of this review may be some store closures for 2012.
The Myer stores which will be closed early 2012 in response to the growth of online shopping include the store at Tuggeranong in the ACT and the store at Forest Hill in East Melbourne. Other stores will be downsized as party of redevelopment plans for the shopping centres in which they are located.
The closures are part of a plan to make the company more profitable by cutting out the weakest links. The store at Tuggeranong, for instance, was one of the least profitable in the nationwide chain. The company may close more stores in the future as lease renewals come up. Without significant reductions in rent the company may be forced to close other low performing stores. However, the company also plans to open 12 new store locations by 2015 in locations which they believe to be more lucrative.
Some other retail chains in Australia are also struggling with the growth of online shopping combined with a cooling economy in some areas of the country. For example, the retailer Fletcher Jones was recently forced to close up to one third of their stores nationwide and lay off 61 employees as part of a plan to revitalise and sell the company.
Some analysts predict that Myer stores in the Wollongong location south of Sydney and in the Dandenong Plaza may also be closed next year. On the other hand, the ongoing mining boom in Australia has boosted incomes in regions like Joondalup, Mackay and Townsville where Myer has opened up new stores. In addition, the Myer store in the town of Bendigo will not be affected by the company's strategy to focus on online shopping and close some retail outlets. The company recently affirmed that they are committed to maintaining a retail presence in the town.
The company is also actively invested in building up their online business to take advantage of the growth in online shopping. The company has embraced online shopping and is actively looking for ways to add value for their online customers. For example, Myer is currently considering plans to evolve their department stores into outlets where consumers could pick up item they have purchased online, browse through items and try on pieces before they make online purchases, and exchange goods purchased online conveniently. The company expects the growth in online shopping to continue and gather pace so they are focused on getting the right infrastructure in place to take advantage of this trend.
The Myer online website is the main hub for their online presence, and you can visit the site by using the link below. You can also find more information about the Myers online store at our verified safe store shopping page.
Myers Gift Store Information Page at Online Shopping Australia
