The problems for the Myer department
stores seem to be compounding as its share price plunges from its $4.20 launch
price to just 54 cents this week.
The Myer CEO Richard Umbers resigned
suddenly during the week following another profit downgrade. Meanwhile
boardroom raider and major shareholder, Solomon Lew, has asked for a spill of
the board - “It is not in the best
interests of shareholders that the current Myer board be allowed to preside
over another year of declining sales, eroding profits and further share price
deterioration before urgently needed change is introduced at board level.”
According to the SMH, ex Myer CEO
Bernie Brooks has just returned from his role helping South Africa’s biggest
non-food retailer avoid collapse, and whilst he will not engage directly in
criticism of Myer he talks about department stores reducing the size and number
of stores and concentrating on unique offers. Others have talked about the
historical attempt by department stores “trying to be everything to everybody”
and the need to focus their offer on unique products and services.
Myer’s Chairman, Garry Hounsell, has
been in the news this week with his now famous (and probably regretted)
statement - 'I'm old fashioned in terms of retail' - not quite what shareholders
were looking for as they face a vacuum without a CEO, at least in the short
term.