Worst yet to come for Myer and David Jones

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If the endless influx of global retailers is hitting David Jones and Myer where it hurts, it is just the beginning, a retail expert says.
Retail Doctor founder and chief executive Brian Walker points to Deloitte’s Global Powers of Retailingreport, which said that of the top 250 retailers, just 15 percent had a presence in Australia. “That means there’s a lot more to come,” he said.
Nearly five years after cult denim retailer Gap opened its first Australian store in Melbourne, a steady stream of international retailers have invested in Australian bricks and mortar. The long list includes Sephora, H&M, Uniqlo, Zara, Topshop, Pottery Barn with Williams Sonoma, and Victoria’s Secret.
Walker said the success of the international brands reflected Australian and New Zealander’s love of travel and awareness of these brands, as well as the online presence the stores had before launching. “Australian retailing is not facing a cyclical change but a large structural change,” he said.
Questions & Answers
Q.What specifically is causing difficulties for David Jones and Myer?
What specifically is causing difficulties for David Jones and Myer?
The continuous arrival of international retailers into the Australian market is having a detrimental impact on David Jones and Myer. This trend is considered a significant structural change in Australian retailing, not just a temporary cyclical shift.
Q.How many major global retailers are currently operating in Australia?
How many major global retailers are currently operating in Australia?
According to Deloitte's Global Powers of Retailing report, only 15 percent of the top 250 global retailers have a presence in Australia. This suggests there is potential for many more international brands to enter the market.
Q.Which international retailers have recently opened stores in Australia?
Which international retailers have recently opened stores in Australia?
A consistent flow of international retailers has invested in physical stores in Australia, including Sephora, H&M, Uniqlo, Zara, Topshop, Pottery Barn with Williams Sonoma, and Victoria's Secret. Gap also opened nearly five years ago.
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