Myer Position in Autralian Retail

2376 Words10 Pages
------------------------------------------------- bs:327 Financial STATEMENT Valuatioin & analysis Stage I: Industry and Media Analysis August 21, 2014 MONTY hICKS 20110738 August 21, 2014 MONTY hICKS 20110738 Introduction The Australia retail sector is under huge pressures from many different forces. In the recent Lander & Rogers Briefing, Myer CEO Bernie Brooks referred to the current environment as ‘the third big revolution of the past 100 years’ for retail. This analysis will look at recent opinions and commentary on the Australian retail sector, with a focus on the potential consequences for the economic future for Myer. These commentaries will assist in highlighting the forces that are in play within the sector…show more content…
With Australian domestic demand being the power behind sales numbers, the demise in consumer confidence due to these forces needs to be managed and rectified to ensure the health of the retail sector. Charney’s article discusses the crucial position the retail sector is in, along with the housing sector. The Australian economy is under further stress because of the abating mining sector, and this is causing the economy to look to other sectors for relief. The article from the Australian counters Charney’s commentary by ensuring a resolution to these concerns. The article was written prior to the handing down of the budget, with it forecasting the significant spending cuts which have taken place. The CEO Bernie Brookes claims “we’ve got a robust plan” to combat the effects of these budgets. Myer has competitor on its doorstep - Australian Financial Review – Michael Smith The single bigger event in the Australian department sector has been the potential overtaking of David Jones. Myer offered very little commentary on the proposed merge, however it did show enthusiasm as their estimation saw a yearly benefit of $85 million a year within three years. Myer also organised a debt financial facility of $500 million. Appointing a strategic advisory to review the proposal of the synergies was also seen as positive activity on the merge. However, the negative sales

    More about Myer Position in Autralian Retail

      Get Access