Things look up for Myer as boom pushes Darwin store

THE Top End will have its first full-line department store after Myer announced it would open a two-level 12,000 square metre outlet in Darwin offering a large range of apparel, cosmetics, homewares and electrical merchandise.

By InvestSMART · 27 Jun 2012

By InvestSMART ·
27 Jun 2012

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The chief executive, Bernie Brookes, said the new store delivered an opportunity for Myer to reach a significant growth area and a new customer base in the north of Australia.

"As we optimise our store network across the country, Darwin is the ideal location for a new store, and will expand our customer base and footprint into the Northern Territory for the first time," Mr Brookes said.

Community support for a Myer store had been "tremendous," he said.

Myer, the nation's biggest department store chain, plans to be a part of GPT Group's proposed expansion of Darwin's Casuarina Square Shopping Centre.

The store is likely to benefit from the mining boom, which has touched regional areas, as well as from the Northern Territory's growing popularity as a tourist destination.

"The store will be in an ideal location for us," Mr Brookes said.

"Casuarina Square is already a well-established centre that has a strong customer offer including specialty retail, supermarkets, discount department stores and a cinema," he said.

It comes as Myer seeks to increase its current store network from 66 to as many as 75 by 2015-16.

When Myer floated on the Australian Securities Exchange in 2009 its prospectus said the owner wanted to operate in 80 locations by 2014.

However, those growth plans have had to be reined in following the global financial crisis, a pull back in consumer spending and a decision to walk away from overpriced leases at underperforming shopping centres.

Myer has closed two stores this year but is planning to open two new stores (Queensland and Victoria) in September and October. Shares in Myer ended 2? weaker at $1.60.

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Frequently Asked Questions about this Article…

What is Myer planning for Darwin and what will the new Myer Darwin store offer?

Myer plans to open a two-level, 12,000 square metre full-line department store in Darwin’s Casuarina Square. The Myer Darwin store will carry a large range of apparel, cosmetics, homewares and electrical merchandise.

Why is Myer choosing Darwin — is the Darwin location strategically important for investors to watch?

Myer says Darwin is a significant growth area that gives the company access to a new customer base in the north of Australia. Management expects the store to benefit from a regional mining boom and the Northern Territory’s rising popularity as a tourist destination, making the location strategically attractive for growth-minded investors.

Will the Myer Darwin store be part of a shopping centre expansion?

Yes. Myer plans to be part of the GPT Group’s proposed expansion of Darwin’s Casuarina Square shopping centre, which is an established centre with specialty retail, supermarkets, discount department stores and a cinema.

How does the Darwin opening fit into Myer’s broader store network expansion plans?

Myer is aiming to grow its store network from 66 to as many as 75 stores by 2015–16. The Darwin store represents the company’s first footprint in the Northern Territory and is part of that targeted expansion.

Has Myer adjusted past expansion targets, and what caused those changes?

Yes. When Myer floated in 2009 it targeted 80 locations by 2014, but those plans were reined in due to the global financial crisis, weaker consumer spending and a decision to walk away from overpriced leases at underperforming shopping centres.

Is Myer opening or closing other stores this year?

According to the article, Myer has closed two stores this year but is planning to open two new stores in September and October — one in Queensland and one in Victoria.

How did investors react to the Myer news — what happened to Myer shares?

The article reports Myer shares ended weaker at $1.60 on the day the story was published.

What has been the community response to Myer’s plan to open in Darwin?

Myer’s chief executive Bernie Brookes said community support for a Myer store in Darwin had been "tremendous," indicating positive local sentiment around the planned opening.