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Brisbane CBD shopping precinct’s future under a cloud as Myer refuses to renew lease

Myer’s future in CBD’s premier shopping precinct is under a cloud as it plans to close the flagship store in the prime spot it has held for 35 years.

  • Myer has been the flagship store in Brisbane’s Myer Center for 35 years
  • It will leave the department store once its lease expires in July.
  • Owner currently discussing future plans for the mall

Myer will not be renewing her lease on a mall bearing her name for more than 30 years, raising fears about her future in the CBD.

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

Daily Mail Australia understands that the decision was made after months of protracted negotiations with the owner and follows several store closures across the country as part of Myer’s consolidation strategy.

Myer will leave the Myer Center in the Brisbane CBD at the end of her lease in July this year.

This is despite the once-ill emporium recently posting its best profit since 2014.

Last week, Myer posted a 24.2% increase in sales to $1.884 billion for the 26 weeks to Jan. 28, as net profit rose more than 100% to $65 million, according to the aussie.

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

“Clearly, Myer’s CEO, John King, has been able to turn the tide of the business,” he said.

‘Look at their half-year results, $1.8 billion in sales, up 24 percent from the same period last year.

“But what we’re seeing in Brisbane is a good example of the challenges retailers now face when it comes to renting space within a shopping mall.

“I think it’s less about the Myer brand and more about the poor condition of the center.”

Professor Mortimer, who lives near the mall and visits it frequently, said he was old and tired.

“I think Myer looked at downtown and saw that it’s tired and needs investment and without that, it’s incredibly difficult for a retailer to maintain a flagship store,” he said.

He added: ‘Obviously, John King has realized significant cost savings for the business. They went through a process in recent years, much like David Jones, where they closed stores that no longer served a community because the demographics had changed.’

Myer posted a 24.2% increase in sales to $1.884 billion for the 26 weeks ending January 28.

Myer posted a 24.2% increase in sales to $1.884 billion for the 26 weeks ending January 28.

A Myer spokesperson said they were unable to reach “appropriate and reasonable commercial terms” with the owner, but were still committed to maintaining a presence in Brisbane’s CBD.

Myer CEO John King said: “While we remain committed to the Brisbane market, we have been unable to negotiate a reasonable business outcome with the owner and as such will continue to seek an alternative CBD location.”

The company said staff will be able to work at other nearby stores.

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

‘Vicinity and ISPT were investigating a number of options for the center, including a scaled-down contemporary department store and plans without a department store that we can now move forward with certainty.

“We look forward to offering a reinvented destination in the heart of Brisbane’s evolving CBD and look forward to sharing our plans shortly.”