Billionaire retailer Solomon Lew says cost-of-living pressures are still a global challenge

Solomon Lew did not give a full trading update at Premier Investments’ AGM on Friday but did say that cost-of-living pressures remain a global issue as shoppers look for bargains.

Premier Investments, whose chains include Just Jeans, is encountering challenging trading conditions.

Billionaire retailer Solomon Lew has called out the tough trading conditions in the retail sector both here in Australia and overseas, with consumers increasingly looking for bargains or promotions before opening their wallets.

Addressing shareholders at Premier Investments’ annual general meeting in Melbourne on Friday, Mr Lew also argued in for the proposed purchase of Premier Investments’ portfolio of apparel brands by department store Myerby department store Myer, with an explanatory booklet for shareholders expected soon. Premier is also considering a demerger of its Peter Alexander and Smiggle brands.

At the AGM shareholders voted overwhelmingly in favour of stripping former Smiggle boss John Cheston of around $3.8m in shares, which the company said had been forfeited. Mr Cheston in June was poached by another billionaire, Brett Blundy, to be the new CEO of his jewellery company Lovisa. But in September Mr Cheston was sacked by Mr Lew over a “serious misconduct” allegation, which Mr Cheston has strongly denied and which has never been detailed by Premier Investments.

There was a 99.99 per cent vote in favour of Mr Cheston being stripped of his shares.

Meanwhile, in his chairman’s address to investors, Mr Lew said 2024 had proved to be a “challenging year” for all retailers and 2025 was looking similar.

“The start to fiscal 2025 has remained challenging, with customers continuing to experience cost of living pressures across all global markets,” Mr Lew told the AGM.

Premier Investments chairman Solomon Lew sees a challenging trading environment globally. Picture: Aaron Francis

“We have previously highlighted the structural shift in retail shopping patterns as consumers continue to migrate towards key promotional periods.

“In particular Black Friday has become a key focus for both consumers and retailers.”

Mr Lew said global sales for the three-week trading period of Black Friday/Cyber Monday, while “challenging”, had not been disappointing, but Premier Investments did not provide a full trading update with sales figures at the AGM.

“Given the first half 2025 result will also rely on the remaining key trading events of Christmas, Boxing Day, and January and back-to-school sales, we cannot view Black Friday performance in isolation from trading through this important period,” he said.

“Our experienced team is well prepared for the critical weeks to come – delivering great products across all brands and channels with our demonstrated unrelenting focus on the basics of retail ­execution.”

E&P retail analyst Phillip Kimber said in a note following the AGM that no sales growth rates were provided and Premier Investments had previously advised that its Premier Retail arm’s overall global sales for the first seven weeks of 2025 were down 3.5 per cent, including Australian sales up 0.2 per cent.

“Given the commentary and lack of growth rates, we estimate that Premier Retail’s sales growth rates remain negative,” Mr Kimber said.

“Given the lack of specific growth rates, and commentary including (Mr Lew’s) words ‘while challenging’ and not calling out a record period like they did last year – we estimate that Premier Retail’s global sales growth rates are likely to have been negative over this three-week period.”

Mr Lew talked up the deal with Myer, whereby Myer would buy its apparel brands – Portmans, Just Jeans, Dotti, Jay Jays and Jacqui E – in return for about $860m in Myer shares which would then be distributed to Premier Investments shareholders. “The combination of the apparel brands business with Myer is an opportunity for us all to play an important role in the future of the Australian and New Zealand retail landscape. (It) will deliver enhanced scale to the combined group, more opportunities through loyalty, and extract growth throughout the design, sourcing and distribution process,” he said.

The deal will need the support of Myer and Premier Investments shareholders. Shareholders are expected to vote on the acquisition in late January.

If approved it is expected that Mr Lew will emerge as Myer’s largest shareholder and be invited to join the Myer board as a non-executive director.

Originally published as Billionaire retailer Solomon Lew says cost-of-living pressures are still a global challenge