Myer in discussion with Nike over concessions
A spokesperson for the department store told IR the negotiations include “ensuring we are placing their products where it is most popular and relevant to our customers.”
A report by Fairfax on Thursday stated Nike’s Australian franchise partner Retail Prodigy Group said the brand was seeking to close up to seven of its 10 Myer concessions.
However, RPG told IR on Friday that that it did not endorse this statement and that it is not accurate.
RPG operates Nike’s standalone bricks-and-mortar stores in Australia, but the online and wholesale channels, including concessions, are handled by Nike directly.
Nike has been contacted for comment, and this story will be updated if they respond.
Department stores caught in the middle
A large-scale exit by Nike would be a blow to Myer, which has yet to reveal its trading performance over the Christmas holiday period, though rival David Jones saw sales slow over the period.
Falling footfall has been a constant challenge for department stores in recent years, with both Myer and David Jones trying out various initiatives to survive the current retail market conditions.
According to Jason Pallant, lecturer of marketing at Swinburne Business School and pillar lead for service innovation at CXI Research Group, department stores have found themselves in a less-than-desirable position, stuck between large-scale one-stop-shops and niche offerings that do one thing well.
“We’re seeing department stores having a lot of challenges because they’re in that strange middle group of trying to do so many different departments, but none of them really have a massive, all-encompassing range, yet they’re also not small enough to be a niche player,” Pallant told IR.
Update: Story updated after receiving comment from Retail Prodigy Group.
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