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Myer in turmoil as CEO steps down and leases overrun company

The Chief Executive of Myer Richard Umbers has stepped down amid sale slumps.

Mr Umbers left the company Wednesday morning, after pressure from its chairman and the board.

This came five days after Myer’s latest profit downgrade, ongoing declining sales and falling share prices.

Interim Executive Chairman Garry Hounsell says the company is hand-braked by stringent leases on some unprofitable stores.

Ross Greenwood speaks with Head of Retail at Colliers International, Michael Bate.

“Their biggest problem is in the number of leases that they hold, 67-odd.

“Their biggest issue is their store size. It’s the square meterage they have on their books.

“If it was a couple of million bucks, they’d walk away. It’s significantly more than that.”

Listen to the full interview below 

Ross Greenwood also speaks with Professor Dean Wilkie, Senior Lecturer at University of Adelaide Business School.

“They had strong brand relevance 20 years ago, they were leading the market.

“They took their eye off the ball, along came a whole set of challenges and now they’re trying to scramble back position.”

Listen to the full interview below