Myer to close two NSW stores

MYER is closing two of its department stores as part of chief executive Richard Umbers’ turnaround plan.

Myer ambassador Rachael Finch tests out VR. Picture: Chris Pavlich

MYER is closing two NSW department stores as part of chief executive Richard Umbers’ turnaround plan.

Myer’s Wollongong store will close in October, and its store in Orange in the state’s central west will close when its leases expire in January.

“These difficult but important decisions are a necessary step in the delivery of the New Myer strategy, which is designed to return Myer to profitable growth,” Mr Umbers said.

The company said it was committed to supporting all affected staff.

David Jones has announced it will move into Myer’s Wollongong Central site, where it will unveil a “new look” store in late 2017. The retailer already has a store in Wollongong, which will continue to operate for now.

Last week, Myer released strong sales results for the third quarter, which Mr Umbers said demonstrated the company was “moving in the right direction and that our customers are responding well” to the New Myer plan.

Most of the investment in the $600 million overhaul has been focused on 12 “flagship” stores in Melbourne and Sydney, with Mr Umbers earlier this year admitting that “clearly the upshot is that there are some stores that are struggling”.

In September, Myer indicated that 20 per cent of its store portfolio was “not well aligned to our strategy”, with the company “canvassing the full range of productivity options” including closures.

The latest closures follow earlier announcements that planned Myer stores in Coomera in Queensland and Tuggerah in NSW would not be going ahead, and that Brisbane’s Brookside store would close.