Myer, Which Is Behind The Digital Age, Is "Crumbling".

When we saw a batch of Australia

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When we came to China to harvest a lot, the retail industry in Australia also experienced some changes quietly.

The impact of electricity providers on traditional retailing and the urgent demand for digital pformation of traditional retail are also being staged in the southern hemisphere market.

Recently, Myer, the biggest department store in Australia, is facing a serious crisis. Its profits have plummeted and its stores have been closed. Meanwhile, its rival David Jones has also delivered a bleak performance, showing the industry a crumbling look of retail sales under the Australian line.

According to Myer's latest earnings report, Myer's net profit plunged 80.4% to 11 million 900 thousand Australian dollars (US $9 million 530 thousand) in the 2017 fiscal year ended July 29th this year, the worst result since its launch in 2009.

Annual net profit fell 1.9% to 67 million 848 thousand yuan.

The tough business environment of the apparel industry has been a strong blow to its performance.

In response, Myer CEO Richard Umbers expressed disappointment. He said: "unfortunately we have not achieved net profit over last year's record, and we are making progress slower than expected."

To make matters worse, Myer issued a warning to the market again when it released its earnings report, indicating that the company's performance in the new fiscal year will continue to be lower than expected.

At present, sales in the first 6 weeks of fiscal year 2018 are not as good as expected.

Myer also plans to close many stores in Australia, including some stores in Adelaide, Canberra and Sydney.

"As Amazon launches electricity business in Australia, the Myer situation may be even worse."

Some analysts pointed out.

According to the world clothing and shoe net, the US electricity supplier giant Amazon will be stationed in the Australian retail market in the next 60 days, which will make the depressed Australian retailing industry face greater pressure.

It is reported that Amazon has said that it has built a large operation center in the suburbs of Melbourne, and has begun to recruit employees.

It is understood that the past year has been a difficult year for Myer.

Although it has made many efforts against the harsh business environment, it seems that it has not achieved much success.

Since 2015, Myer has closed (or announces closing) 7467 square meters of store space, including the closure of Sydney Top Ryer City branch in 2015 (which was one of the first branches after its launch in 2009), closing the new state Wollongong and Orange stores in 2016.

Myer is not alone. Another Australian retail giant, David Jones, is also facing a bleak situation: its profits fell by 25.3% to 127 million Australian dollars in the last fiscal year of June, which is also the first decline in profits since 2009.

In this regard, some analysts pointed out that under the background of the depressed retail trade in Australia, retailers should face not only the negative effects of consumer spending and wage increases, but also the change of the consumption pattern of the millennial generation in Australia, because by 2030, the millennial generation will become the dominant population.

The stock strategist of Macquarie said publicly that the long term consumption pattern of the rapidly expanding Australian millennial generation will bring significant disadvantages to many famous Australian brands and retailers.

"They are more educated, closely connected and more digital than the parents' generation.

They are addicted to digital life and equipped with smart phones.

They browse reviews, regularly write comments on the Internet, compare prices, and purchase decisions through more information.

This is bad for companies selling mass products that do not meet the millennial social and personal lifestyle.

It can be imagined that both Myer and David Jones are partly affected by the negative changes brought by the changes in mainstream consumer groups, but more importantly, in the era of digitalization, if retailers fail to keep pace with this pace, it is not just a "crumbling" problem.

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