96FM Perth
Experience The Change

Now Playing:

Loading...
Listen on

There Is Some Really Bad News For Myer Shoppers

Myer has received a massive fall in its share price following a huge re-evaluation from a leading analyst.

In the no-holds-barred note to clients Credit Suisse Analyst Grant Saligari has said "the entry of TK Maxx and Amazon, Myer's overly large store portfolio and, in the near term, a deteriorating spending environment".

"It is likely to be all too much for Myer," he said.

Myer will release its third quarter sales results on Thursday.

TK Maxx arrived in Australia with 35 stores, while Amazon has formally confirmed plans to launch in Australia.

"They are both selling premium branded product, with TK Maxx at significantly discounted prices," he said.

"Amazon is likely to accelerate a consumer spending shift to online - customer affinity being particularly strong for home wear, clothing and beauty - all with a high overlap with Myer."

"The risk is that the starting point might be just too difficult, with the recent acceleration in competition," he said.

Myer has not commented on the report.

Share this: