“There are actually economies of scale when you merge the 2, cope with one set of suppliers and develop a complicated personal label vary, and deal with [retail] expertise,” he stated.
Retail historian at Macquarie College, Dr Matthew Bailey, stated any future purchaser of David Jones must work out what edge shops have over different bricks-and-mortar retailers, nonetheless.
“The longer-term points dealing with shops of intense high quality competitors in each product class that they promote,” he stated.
“The query of relevance is to seek out what their aggressive benefit is.”
David Jones and Myer have each expressed optimism in latest months about client spending, with Myer forecasting robust revenue numbers whereas David Jones recorded a slight decline in earnings as a result of results of lockdowns in 2021.
David Jones boss Scott Fyfe stated on Tuesday that whereas there is no such thing as a doubt the financial outlook is unsure, the retailer is exhibiting a post-COVID bounce again.
“Apparently, what our outcomes throughout the final yr or so have proven is that, outdoors of a lockdown setting, clients flock again to their retail purchases in an enormous method with steadily constructing footfall and persistently rising on-line buying site visitors,” he stated.
Retail analysts agree that irrespective of how possession of the shops performs out in coming months, each David Jones and Myer have robust model fairness.
Oberg stated if the 2 firms have been to return beneath the identical possession, he anticipated each manufacturers may proceed to function reasonably than a brand new firm identification being established.
“ I feel there may be nonetheless numerous goodwill within the manufacturers. However there’s a query of whether or not you’d want a Myer and a David Jones in the identical block,” he stated.
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