News: Myer to close VIC, ACT, NSW stores

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Myer Holdings Limited (ASX:MYR) will close stores in Victoria and the Australian Capital Territory and reportedly is considering New South Wales store closures in response to tough retail conditions. 

The department store retailer has told Fairfax it will look to sign leases for a shorter duration when they are coming up for renewal and potentially downsize some stores as the company builds its online presence.

Myer stores at Tuggeranong in the Australian Capital Territory and at Forest Hill in Melbourne will close in 2012.

Analysts have told Fairfax Myer stores in at Dandenong Plaza in Victoria and Wollongong in New South Wales may also be shut down.

However the report also says Myer is aiming to have up to 80 stores, from a current 68 Australian stores, and has opened new stores in Western Australia and Queensland to capilatise on the mining boom.

Shares in Myer dropped 2.59 per cent at the end of last week, closing at $2.26.

In the 2011 financial year Myer Holdings posted a net profit of $159.6 million.