Myer's Future in Doubt as David Jones Collapse Looms 2026

Myer, the Australian department store chain, is facing mounting pressure as its profitability deteriorates and its share price hovers near all-time lows, prompting questions about whether it will follow rival David Jones into administration. The company's recent sales growth has been driven by acquisitions rather than organic demand, and heavy discounting has eroded margins.

Myer's Sales Growth Masks Underlying Weakness

At first glance, Myer's headline numbers seem to defy the retail gloom, with double-digit sales growth to $4.1 billion last financial year. That lift, however, was not driven by surging demand, but by adding sales from the newly acquired apparel chains, Just Jeans, Jay Jays, Portmans, Dotti and Jacqui E, bought from billionaire businessman Solomon Lew's Premier Investments.

Meanwhile, to keep registers ringing, Myer employed "higher than planned promotional activity to stimulate demand", according to its annual report, which reduced its profitability. The department store has also slashed the value of its brands, down more than $200 million in one year alone, in an admission that its labels are worth far less than they once were.

David Jones' Collapse Raises Uncomfortable Questions

David Jones, the embattled upmarket retailer, is shutting half its 38 stores and has entered administration. Its slide into administration raises an uncomfortable question for Myer: is it next? The two retailers have long been rivals, but both have faced a "sustained erosion of relevance" as department stores struggle to compete with online and specialty retailers.

When David Jones' doors slide open, shoppers are greeted by rows of slashed price tags, frantic discounting, and all the other hallmarks of a department store closing down. Except, this isn't David Jones—it's Myer, where entire floors are seemingly permanently on sale. The background to this story is set out in David Jones Collapse: Can the 188-Year-Old Retailer Survive. A related thread runs through David Jones Administration: What It Means for Australian Retail. Earlier coverage in David Jones: Death by a Thousand Cuts for a Retail Icon shows how the argument developed.

Key Takeaways for Investors and Shoppers

• Myer's sales growth is largely due to acquisitions, not organic demand.
• Heavy discounting and brand devaluations are hurting profitability.
• David Jones' administration highlights the risks facing department stores.
• Myer's share price is near all-time lows, reflecting investor concerns.
• The broader retail sector faces structural challenges from online competition.

Myer vs. David Jones: A Comparison

What This Means for the Retail Sector

The struggles of Myer and David Jones are symptomatic of a broader malaise in the department store sector. Once the anchors of shopping malls, these retailers have seen their relevance eroded by the rise of online shopping, fast fashion, and specialty stores. The COVID-19 pandemic accelerated these trends, and many department stores have failed to adapt. A closer look at the same subject appears in David Jones Collapse: Thousands of Jobs at Risk in Administration. Anyone following the wider picture can start with David Jones Store Closures: What Shoppers Need to Know Now. The same theme surfaces in David Jones to Close 19 Stores in Urgent Restructure, which takes a different angle.

Myer's acquisition of Premier Investments' apparel brands was an attempt to diversify and capture more sales, but it came at a cost: the company took on debt and inherited brands that may themselves be struggling. The $200 million write-down on brand value suggests that the acquired labels are not performing as hoped. Context on how this played out before sits in David Jones Administration Looms After Failed Landlord Talks.

FAQ

The retail sector's challenges are not confined to Australia. Globally, department stores are under pressure. As we noted in our analysis of Europe heatwaves 2025: record summer signals grim future, extreme weather events can disrupt supply chains and consumer behavior, adding another layer of risk for retailers.

For Myer, the path forward is uncertain. The company must find a way to differentiate itself and reduce its reliance on discounting. Otherwise, it risks following David Jones into the annals of retail history.