Myer lost sales to rivals such as David Jones, Target and specialty retailers, which started discounting stock in the first week of June. "It was a risk they took and on one level, it made sense," one analyst said. “But unfortunately, the clothing market is very competitive - they werenâ€™t on sale but the other 80 per cent of the retailers they compete against were on sale.
Analysts said Myerâ€™s decision to hold a $50 million clearance sale so soon after wrapping up its six-week end-of-season stocktake sale on July 27 suggested that fourth-quarter sales had been slower than expected and that the retailer had been left with excess winter inventory. "Theyâ€™re effectively extending [the mid-year clearance]," said one analyst, who declined to be named. "That itâ€™s over one-third of the size of the mid-year clearance sale suggests itâ€™s quite significant. "This is about ensuing theyâ€™re clean on inventory, which is a sensible strategy.
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