That's certainly one way to look at it, but the threat of competition has always been there. Bernie Brookes even mentioned earlier in the year that when H&M opened up in Melbourne City's Emporium, Myer actually saw a boost in sales for the month. Also, H&M and Zara are more likely to take market share from Target and Cotton On, as they are in a cheaper bracket.
Myer's cosmetics are now using MAC Cosmetics, which from my understanding is a top contender for most women. Another threat is Sephora (which is a make-up only department store, huge in Europe), however they are only opening 1 or 2 flagship stores in each city, and they have had constant delays in getting up and running.
I think we all agree that Myer certainly has plenty of threats as well as some weaknesses. Large scale retail can be a difficult game, however I think at this price Myer looks like good value. They are still profiting, sales are being maintained, and ultimately the business is ok, however their share price has been sold down like they are doomed.
I don't think they are in the 'Hanging on by a Thread' territory just yet, and I actually think their current initiatives could help turn the business around. Technology will certainly help maintain wage expenses, and hopefully the store fit-outs and giftorium idea will help boost some sales.
MYR Price at posting:
$1.68 Sentiment: Buy Disclosure: Held
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