Australian department store Myer has been unable to renew its lease in Brisbane CBD’s Queen Street Mall and is on the hunt for alternative locations.
Myer CEO John King said the company remains committed to having a presence in the Brisbane CBD, but it has not been able to reach appropriate and reasonable commercial terms with the current landlord.
The current store will cease trading at the end of July 2023.
The department store will continue to trade in surrounding stores, including Indooroopilly, Chermside, Carindale and Mt Gravatt, as well as online.
It said it will begin a search for an alternative CBD site, with “more appropriate commercial terms.”
Myer added that it will provide redeployment options within the business and surrounding stores for its team members, where possible.
“We thank our team members for their service and will be providing redeployment opportunities at nearby stores,” King said.
“For our loyal customers, we will continue to serve the Brisbane area with our surrounding stores and our 24/7 online business while we explore future Brisbane CBD options, and we thank you for your ongoing loyalty.”
Earlier this month, Myer reported double growth in its net profit after tax (NPAT) to $65 million for the first half of FY23, with CBD stores being its strongest channel, increasing 53.7%, or 20.0% on a comparable basis when lockdown periods are excluded.
Myer posted a 101.4% growth in NPAT for the period, its best result since 2014. The retailer also reported record sales for the half of $1.8 billion, up 24.2% year-on-year, and 17.2% higher than H1 FY20.
King said the department store has seen strong growth in loyalty transactions and store traffic. Sales for the eight weeks following Christmas are up 16.1% year-on-year.
“Our strong omni-channel offer continues to give us the ability to capture the opportunities that pure plays simply cannot,” King said, “with strong growth in our store sales reflecting the re-balancing of sales post lockdowns, a return to CBD growth and a robust online business providing synergies in both digital and physical environments.”