As the retail industry searches for responses to a dramatic
loss of sales, online competition, shrinking margins and changing customer
habits, news of a proposed merger between department store giants Myer and
David Jones has emerged.
Apparently the $3 billion merger approach by Myer was made at
the end of October and has since been rejected by the David Jones board. It was
claimed that there were significant benefits from the plan including merging
management structures, back-end systems and closing some stores. The plan was to
retain the two store’s identities but more clearly differentiate their offers
and appeal to a broader customer base.
The rejection of the proposal probably won’t put an end to
merger speculation as retail entities, large and small, look for ways of
adjusting to the biggest change in retail since the 1960’s.