Myer Electronics Still ‘Soft’
Myer is likely shrink its electronics departments further and devote more floor space to more profitable categories like cosmetics and fashion due ongoing pressure in the tech space.
The retailer also exited music and DVD categories, last year.
“Electronics, with all the price deflation, continues to be a bit softer,” Tony Sutton, Myer’s Executive General Manager Stores, told Afr.
Myer has suffered poor electronics sales for some time, despite the fact it has taken on cheaper brands like Hisense and Philips new budget TV’s and sound systems, both said to be selling well.
It also stocks higher end brands like Bose, Apple and Bang and Olufsen.
However, lifestyle goods like small appliances and coffee machines continue to be among its strongest performers, according to its latest sales update. Cosmetics, fashion and toys are also among its most popular categories.
But Myer is not on its own. Rival David Jones electronics departments were taken over by Dick Smith last year, after DJ’s, too, struggled to make money from tech.
Last week, the mass retailer reported sales inside DJ’s had doubled in Q4 FY14 and said all was rosy.
But there have been some doubts about the long term health of the deal, particularly since the company has now been taken over by South African-owned Woolworths.
Sutton, says he has not yet seen any changes at DJs following the change in ownership.
The refurbished Myer store opened in Adelaide’s Rundle Mall at the weekend. Sutton says he anticipates almost 70 stores will be opened by 2014-15.