👉 Background: Myer is one of Australia’s oldest department stores, dating back to 1900. Earlier this year, Myer acquired Apparel Brands from Premier Investments for $900 million. That means they now own over 700 retail stores with brands like Just Jeans, Dotti and Jay Jays alongside its 56 department stores.

👉 What happened: Just 16 weeks into the year, the merger-wedding-glow is fading. While its department store sales were up just 1.9%, Apparel Brands saw their revenue fall 3.9%. Not exactly love at first Profit & Loss. Myer blamed almost everything under the sun for their slower performance. They blamed:

• Cost-of-living pressures
• The May federal election
• Intense discounting
• Issues with their warehouse and logistics, which still isn’t resolved

👉 What else: Investors are now watching closely to see if Myer’s $900 million acquisition strategy will pay off… But it’s not so easy to ensure a smooth transition when your whole warehouse system is falling to pieces behind the scenes.

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What's the key learning?

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💡Retail might look flashy on the outside, but behind the scenes, it’s all about getting the basics right. And one of the most important basics? A warehouse that works.

💡Myer’s fancy new distribution centre was meant to be a game-changer…but instead, it’s been a total disaster. They’ve had issues with stock trapped in the warehouse, delayed deliveries and they’ve had to resort to online orders being picked by in-store staff… from in-store stock.

💡Myer believes those warehouse issues have already cost them $12 million in lost earnings in just the first half of 2025 alone. And when you're trying to integrate a big acquisition, like 700 new apparel stores), a bungled warehouse is the last thing you need.