Myer shares drop to record lows
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Myer shares have slumped to a record low, but chief executive Bernie Brookes insists the troubled department store chain has a positive future.
Myer shares tumbled 5.1 per cent on Thursday to $1.69, its lowest level since the company listed on the Australian Securities Exchange in November 2009.
Mr Brookes was reluctant to talk about the retailer's flagging share price when he attended a business forum in Melbourne on Thursday.
"If you keep your eye on that scoreboard then you are keeping your eye on the wrong scoreboard," he said.
However, he painted a positive picture for the company's future.
"All we can do is to make sure that we've got the newest product the freshest product the best looking stores, the best customer service, the best range and it's those things that we can control," he said.
"There's plenty of opportunities still in business, although there's plenty of tough cards being dealt at the moment. We're just going to have to drive through it.
"It's a structural change, there's a little bit of cycle in it but we're just going to do our best to deliver a return and a good a service for both our shareholders and our customers."
City Index analyst Peter Esho said Myer was vulnerable to the current weak consumer sentiment as it did not offer an exclusive or niche product range.
It was also struggling to cater for bargain hunters as its prices remained relatively high, with shoppers often able to find the same items online for less.
"It isn't niche enough, it's pretty mainstream, which means it competes in a very fragmented market," Mr Esho said.
"It's a brand that tries to see itself as a competitor to David Jones but in reality and Myer will never admit this they're probably a closer comparison to Target."
However he said Myer tended to do quite well when consumer sentiment was higher, so if there was a dramatic turnaround in conditions the company could recover.