Myer announced its annual results today, showing a fall in profit for the seventh year in a row.
Sales were flat as Australia’s biggest department store chain continued to work its way through a restructure.
A short time ago, its shares were up around 2% to $0.735, after the results came within analyst expectations.
When the retailer floated on the ASX in November 2009, the shares closed the first day of trade at $3.75.
Here’s how the share price has deteriorated:
In 2009, the issue price of $4.10 valued the company at $2.4 billion.
At today’s price of 73.5 cents, Myer’s market valuation is about $603.6 million, or about a quarter of the 2009 number.
Hianyang Chan, senior research analyst at Euromonitor International, says Myer continues to create a defined position in a competitive and challenging retail environment.
“The inexorable march of technology has wired its way into the retail sector and e-commerce giants such as Amazon, Alibaba and Rakuten are formidable powerhouses that are disrupting retail businesses globally, and categories such as consumer electronics and appliances, home and garden, apparel, accessories and footwear are increasingly migrating online,” he says.
“The impending arrival of Amazon will pose a threat to most major retailers and Myer will be no exception. Amazon’s closed system allow a consistent and high quality consumer experience that will potentially win over many consumers in Australia and steer them away from traditional bricks and mortar stores.
“In a highly competitive, fast moving industry where consumers’ expectations and demands change rapidly, it is expected that Myer will continue to push to offer even leaner, faster responses to consumers’ demands, embarking on innovative marketing campaigns and further enhancing their omni-channel offerings to improve customers’ shopping experience.”