Whether DJ's and Myer merge or not, both are unlikely to survive in anything but a token form in a decade or so

Whether DJ's and Myer merge or not, both are unlikely to survive in anything but a token form in a decade or so. DJ's generate only 1% of sales via their website and Myer's week long crash during the Christmas sales emphasises their failure to adapt to online. There is also host of ultra competitive international retailers lining up to enter the Australian market. The OECD reports a significant hollowing out of the Australian middle class. Essentially, a greater portion of earnings are going to fewer in the population. In the US this trend is also observable. Discount stores and those targeting the ultra wealthy are thriving. Whilst DJ's and Myer's US peers, Sears and JC Penny, recently announced significant store closures. Since their peaks in early 2007 their shares have fallen 82% and 94%, respectively. The middle is becoming a bad place to be. Read more: (VIEW LINK)