Cloud over Myer future
Retailer, Westfield dodge contract questions
MYER is remaining tightlipped about its long-term future in Geelong on the back of a challenging period for the department store chain.
The 117-year-old retailer, which has had a presence in Geelong since the early 1950s, is under increasing pressure to turn around performance across the country.
Myer and Westfield Geelong yesterday dodged ques- tions about Myer’s current contract with the shopping centre and when lease renewal conversations are due to take place.
Workers suggest falling profits have forced the chain to reconsider its long-term future in Geelong, however, sources closer to management report it’s business as usual.
A Myer spokesman de- clined to detail what impact the Green Spine works on Malop St had on takings and foot traffic but supported the improvements.
“We are very supportive of the Revitalising Central Geelong Action Plan and eagerly await the completion of the works that are currently under way in Malop St,” he said.
In an update for investors on its store portfolio in October, Myer said it had 19 stores — almost one in every three — that faced closure or having space handed back to landlords if their performance did not improve.
It did not name the stores but said four of them have leases expiring by 2020 and another four had leases expiring between 2021 and 2025.
It’s believed Myer’s Geelong contract has at least two years left.
Both Myer and Westfield declined to comment on whether there was talk of reducing Myer’s significant floor space at the centre, which occupies a large portion of the ground and first level.
“Myer has a long and proud history of serving the Geelong community, employing more than 120 locals,” the Myer spokesman said.
It’s been a difficult time for the department store, whose CEO, Richard Umbers, stepped down last week.
Myer shares fell to new lows on Monday after the department store owner’s biggest shareholder, billionaire Solomon Lew, criticised chairman Garry Hounsell amid a backdrop of profit downgrades and concerns around large lease liabilities.