Its already too late for CML. Their different department stores compete too much with each other. Target competes with K-Mart, which in turn takes sales from Grace Bros- Myer. They are already the dominate player in department stores so there is no where to grow to.
Meanwhile, Harvey-Norman, who was originally just another electric store discounter, is rapidly expanding into more and more of the traditional department store market. Same goes for Wesfarmers Bunnings hardware chain. Have you been into one of those things lately? I go there to buy nails and I see clothing and electrical goods. Its also looking more and more like a department store.
So these kinds of places are eating away at the margins. CML is trying to hit back with their K-Mart Garden centres and Myer Mega-Marts with some success.
Coles supermarkets are their real success, but I can only see shrinking returns from the Myer-Grace side of the business.
CML Price at posting:
0.0¢ Sentiment: None Disclosure: Not Held
