Myer Holdings (MYR)

Shares / Stock Code

MYR

Stock Exchange / Sharemarket

ax

Myer Holdings (MYR) is the largest non-discount department store chain in Australia. At the end of FY09, MYR operated 65 stores across Australia, distributed more or less in line with Australia's population. MYR was listed on ASX on 2 November, 2009. The company offers more than 600,000 product lines across its 11 product categories, which include clothing, youth fashion, intimate apparel, fragrances and cosmetics, homewares, electrical goods, toys and general merchandise. The company plans to expand its store network from 65 to 80 over the next five years.

Differentiation between MYR and David Jones is largely based on product range, demographics and shopping experience. While David Jones targets upper middle and upper income earners in an older demographic with a sophisticated store feel, MYR targets more middle income earners and strives to make shopping stylish and fun for younger shoppers and the youth market. The MYER one loyalty card aims to attract new customers and increase spend per customer with loyalty gifts and other member benefits.

Myer Holdings (MYR)'s major direct competitor is David Jones (ASX: DJS); however, MYR also competes with discount department stores (Big W, Target, Kmart) and specialty retailers, particularly apparel and footwear stores. Pharmacies present significant competition in fragrances and cosmetics. MYR's customers are retail shoppers. Whereas David Jones' core customers are upper income earners in the 35- to 65-year age group, Myer appeals to a younger adult demographic in a more moderate income bracket.

Myer Holdings History

Sidney Myer opened the first Myer store, selling draperies, in Bendigo in 1900 and in 1911, the first Myer Emporium opened in Melbourne. In 1983, Myer acquired NSW-based Grace Brothers. Then in 1985, Myer merged with Coles in a $1B deal, the largest in Australia to date. Although the ASX-listed Coles Myer group continued to grow, business performance deteriorated in the early 2000s. In 2006, Myer was sold to private equity and the Myer family for $1.4B. In Oct-09, MYR was re-floated on the ASX.