Myer looking for improved lease terms from landlords as it reviews store viability

Myer will make decisions about the future of each of its stores when it discusses lease renewals with landlords in 2012, the department store group has said as part of its interim results announcement to January 28. 

“In the current environment it is not unexpected that our discussions with landlords highlight adjustments in the timing of new stores and redevelopments,” said Myer chief executive Bernie Brookes. 

“We have recently taken the decision not to proceed with a planned new store at Watergardens [Victoria], as significant delays in this development led to Myer exercising its right to exit the agreement. 

“We will continue to provide updates on new store openings when we have certainty from developers. 

“We will continue to review the merits of all new and existing stores particularly in the context of lease renewal discussions,” says Brookes. 

Myer will open two new stores at Fountain Gate (Victoria) and Townsville later this year, and construction is also underway at a new store at Shell Harbour (NSW). 

Over the six-month reporting period ending January 28, Myer closed its store at Forest Hill (Victoria), and more recently Tuggeranong (ACT) as the leases at these stores expired. 

Brookes identified “improved store lease terms” as factors that Myer can influence over the next six month to improve the business in what will be a “challenging trading environment”. 

Myer profits fell 17.5% in the second half of fiscal year 2012 with the retailer reporting net profit of $88 million. 

The retail giant recorded sales of $1.43 billion in the six-month period – a 1.7% reduction on the previous period. Comparable store sales were down 3%.