Myers future in Brisbane’s CBD shopping district under a cloud as it refuses to extend its lease

Myer is not renewing his lease at a mall that has borne his name for over 30 years, sparking fears about his future in the CBD.

The retail chain has decided not to renew its lease at Myer Center in Brisbane’s CBD and will leave the site in July this year.

Daily Mail Australia understands the decision came after months of lengthy negotiations with the landlord and followed several store closures across the country as part of Myers’ consolidation strategy.

Myer will be leaving the Myer Center in Brisbane’s CBD at the end of his lease in July this year

This is despite the once-struggling trading venue recently posting its best profit since 2014.

Last week, Myer reported a 24.2 percent increase in sales to $1.884 billion for the 26 weeks ended Jan. 28, while net income soared over 100 percent to $65 million, according to The Australian.

Retail expert Professor Gary Mortimer told Daily Mail Australia the decision to close the eponymous center came as a “surprise”.

“Myer’s CEO, John King, clearly had the ability to transform the business,” he said.

“Look at the half year results, $1.8 billion in revenue – up 24 percent from the same time last year.

“But what we are seeing in Brisbane is a good example of the challenges retailers are now facing when it comes to leasing space in a shopping centre.

“I think it’s less because of the Myer brand and more because of the poor conditions at the center.”

Professor Mortimer, who lives near the mall and often walks in it, said it was old and tired.

“I think Myer looked at the center and realized it was tired and needed investment, and without that it’s incredibly difficult for a retailer to run a flagship store,” he said.

He added, “Clearly, John King has achieved significant cost savings for the company. They’ve gone through a process similar to David Jones’ in recent years, in which they’ve closed businesses that no longer served a community because demographics had changed.

Myer’s revenue for the 26 weeks ended Jan. 28 increased 24.2 percent to $1.884 billion

A Myer spokesman said they have not been able to reach “reasonable and reasonable terms of business” with the landlord but are still committed to maintaining a presence in the Brisbane CBD.

John King, CEO of Myer, said: “While we remain committed to the Brisbane market, we have not been able to negotiate an appropriate commercial outcome with the landlord and will therefore continue to look for an alternative CBD location.”

The company said employees could work at other nearby stores.

A spokesman for the center’s co-owners Vicinity and ISPT said they had no concrete plans for the center.

“Vicinity and ISPT evaluated a number of options for the center, including a downsized modern department store and plans without a department store, which we can now confidently move forward with.

‘We look forward to delivering a redesigned destination in the heart of Brisbane’s evolving CBD and expect to announce our plans shortly.’

Source: | This article originally belongs to Dailymail.co.uk