Retail / news
Myer shares plunge 12% after retailer flags sharp consumer spending slowdown
Australian department store operator Myer reported a steep decline in consumer demand during June and July, sending its shares down more than 10% on Monday.
Myer warned that discretionary spending has slumped in the past two months as economic uncertainty and deteriorating sentiment weigh on shoppers. The company said the slowdown was particularly pronounced in June and July.
Shares of the retailer fell by 12% in early trading on Monday, reflecting investor concerns about the broader retail environment in Australia. The drop erased recent gains, bringing the stock to its lowest level in weeks.
The department store operator did not provide specific sales figures for the period but indicated that the trend was broad-based across its product categories. Myer, one of Australia's largest department store chains, has been grappling with shifting consumer habits and increased competition from online rivals.
Analysts noted that the warning aligns with softer retail data nationally, as higher interest rates and cost-of-living pressures curb household spending. Myer's outlook suggests further weakness in the discretionary retail sector in the coming months.