There was a time when a shopping centre landlord would happily lease a large space to Myer on a very low rent. Its presence would attract so many customers the whole centre would benefit. Rents paid by smaller retailers would effectively subsidise those of department stores like Myer and David Jones.
Those days are long since passed and Myer’s latest quarterly update explains why.
The continued slide in sales has cut short the tenure of CEO Richard Umbers, drawn the ire of substantial (and vocal) investor Solomon Lew and crushed the company’s share price. Myer relisted on 2nd November 2009 at a price of $4.10. Its share price has since fallen by 87.6%.
Surely, this is bad news for shopping centre landlords and investors in Australian Real Estate Investment Trusts?