Fashion firm Edcon eyes on Aussie retailer Myer Stores
07 Sep '05
2 min read
Johannesburg based fashion retail company Edcon announced earlier this month by Australian holding company Coles Myer Ltd that it would consider 'ownership options' regarding its Myer chain of stores, Edcon will be forming a team in South Africa and Australia to explore any possible opportunities for the company.
“Australia is a large market in the Southern Hemisphere and if Coles Myer decides to divest Myer then they want to be in a position to determine if an acquisition of Myer would create value for Edcon shareholders,” said CEO Steve Ross.
Ross said that the team would conduct an evaluation to explore any apparent similarities between Edcon and Myer relative to market position, brand components, product sold and product seasonality. These may support improved purchasing leverage for Edcon, as well as increased sourcing opportunity, international brand management and operating economies of scale of the combined business.
“They have a disciplined approach to acquisitions and they will carefully evaluate all issues in regard to any potential international diversification in our core business,” stated Ross.
South African leading retailing company Edgars Consolidated Stores Ltd (Edcon) is the leading clothing, footwear and textiles (CFT) retailing group in South Africa trading through a range of retail formats. The first Edgars store was opened on 6 September 1929 in Joubert Street, Johannesburg. Since then, the company has grown to nine retail brands trading in over 700 locations in South Africa, Botswana, Namibia, Swaziland and Lesotho.
Australia's largest retailer Myer is the largest chain of department store. It has 61 stores around the country. Their annual turnover is A$3.1 billion and their market share in Australia is similar to that of Edgars in South Africa, at roughly 20%. The company with more than 1900 stores throughout Australia and New Zealand.