Mar 20, 2014

There’s no other store like David Jones — certainly not Myer

David Jones is outperforming Myer by a wide margin -- but the entire sector is feeling the pinch. Would a merger really help?

Paddy Manning

Crikey business editor

The dead flat sales growth and falling profit reported by Myer this morning, over what should have been a strong half-year, underlines the structural challenge facing our two big department stores — and why they are being forced into an uncomfortable merger.

Myer shares fell sharply this morning, dropping 5% to $2.53, on news total sales rose just 0.3% to $1.7 billion in over the six months to late January — despite the huge Christmas stocktake sales. Operating profit margin fell 21 basis points to 41% and after-tax profit dropped 8% to $81 million.

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