PGR vs SFH, page-5

Thank you, pcap and Andrew.

Your views accord with mine.

This is a sound business with good prospects.

You will have seen in the AFR:
Myer searches for new brands to revitalise range after losses to rival

Myer is searching for new brands to replenish its range after losing key brands such as Country Road and Mimco to arch rival David Jones.

Woolworths has now had a change of heart and plans to stop selling Country Road, Mimco and Politix in other department stores in 12 months as part of a strategy to sell more exclusive brands at David Jones, differentiate its range from Myer’s, reduce overexposure of some brands and better control the customer experience.

Country Road, Mimco and Politix are sold in 53 Myer stores as well as 45 David Jones stores and more than 600 stand-alone stores in Australia.

Woolworths has declined to reveal Country Road Group sales in Myer, but has said the decision will cost it $5 million before interest and tax in the first year.

David Jones has also secured exclusive partnerships with at least three other brands sold in Myer – Kenzo, Nautica and Scotch & Soda.

Myer declined to comment on the impact of the loss of the brands – which follows the exit of another big brand, Esprit, earlier this year – but a spokesman said the retailer was in ‘‘active discussions’’ with suppliers to add new brands to its range.

‘‘We look forward to making announcements in this space over the coming months,’’ he said.

Myer is attempting to sell three company-owned brands – sass & bide, Marcs and David Lawrence – through Melbourne based boutique corporate adviser Flagstaff Partners.
____

Which looks to me like a grand opportunity for PAS to step up with fresh ideas for a customer in need.

Ash