As the retail industry searches for responses to a dramatic loss of sales, online competition, shrinking margins and changing customer habits, news of a proposed merger between department store giants Myer and David Jones has emerged.
Apparently the $3 billion merger approach by Myer was made at the end of October and has since been rejected by the David Jones board. It was claimed that there were significant benefits from the plan including merging management structures, back-end systems and closing some stores. The plan was to retain the two store’s identities but more clearly differentiate their offers and appeal to a broader customer base.
The rejection of the proposal probably won’t put an end to merger speculation as retail entities, large and small, look for ways of adjusting to the biggest change in retail since the 1960’s.