By Craig Zammit
SYDNEY: Myer has secured the anchor tenancy at Westfield Eastgardens, replacing the rival David Jones department store currently in operation at the site and getting one back from its rival after loosing Myer Burwood to DJs earlier this year.
Westfield Eastgardens owner, the Terrace Tower Group, stated today that the Myer department store would commence its anchor tenancy following the expiry of David Jones’ lease later this year.
The announcement that Myer will take control of the David Jones store comes after David Jones performed the identical manoeuvre earlier this year when it took over the 14,500 square meter former Myer location at Burwood in Sydney’s inner west.
In recent times, Myer has been accused of loosening its competitive grip on its rival department store chain, David Jones, after Myer was sold by Coles to Texas Pacific Group last year for $1.4 billion, simultaneously reducing its stock discounting.
However, this new takeover may spur the Myer department store chain into a more competitive space, despite David Jones looking to capitalise on the recent uncertainty surrounding its competitor.
David Jones CEO, Mark McInnes, stated recently that since Myer was sold, David Jones was able to more closely examine its business practices.
“New ownership of Myer has resulted in more rational decision making than was previously the case. We expect medium to long term benefits to continue to flow through to shareholders from industry restructure,” he said.