Myer, and many other retailers are in big trouble because of a confluence of events.
The first is that in general discretionary spending is going to get smashed as this worldwide depression works itself out. Even in an insane shopping culture like Australia people are going to be buying less garbage they don't really need with money they no longer have.
More importantly the internet is going to do far more damage. I recently bought some Levi's Jeans online from the states for about 30% what they would have cost me at Myer (including express air post). I've been telling everyone I know this, not that they didn't know already, and more and more people are going online for more and more of their shopping.
Myer will no longer be able to charge 300% of overseas prices and their business model will have to be dramatically scaled back or they will collapse.
As a long term play I wouldn't buy this share for even 50 cents. If they are still profitable in 3 years time that will be a good achievement.
Twinsen
MYR Price at posting:
$2.10 Sentiment: Sell Disclosure: Not Held
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