Harvey Norman snatches up Megamart

Coles Myer has dumped its poor performing Megamart furniture and electrical chain, striking a deal to divest six of the nine stores to mass merchant, Harvey Norman. The group will close the remaining three locations on Sunday.

The locations include Alexandria in NSW, Coorparoo in Queensland and four Victorian sites - Fountain Gate, Sunshine, Thomastown and Chadstone. All will be converted to Harvey Norman retail outlets.

The two companies are also negotiating sub-lease agreements for Megamart stores in Auburn and Casula, NSW, and Perth City, which are set to be closed.

Coles Myer spokesperson, Scott Whiffin, said it had a total of about 900 staff across the Megamart stores. Those who did not obtain positions with Harvey Norman would be given priority for roles at Myer and other Coles Group brands, he said. So far, the group had redeployed 200 people across its various chains.

The total cost of divesting the Megamart chain was $56 million, according to a statement released to the Australian Stock Exchange.

Coles Myer unveiled its first Megamart store in September 1998. After experiencing a run of disappointing sales results, the group launched a rebranding campaign in December last year to try and market the stores as a one-stop shop for technology and entertainment.

However, in its latest annual financial report, it admitted the rebranding effort had failed. The Megamart chain recorded a 5.9 per cent decline in overall sales during the year, reporting a loss of $35 million for the 12 months to June 30.

"Being first to market and focusing on home entertainment, digital, home office and entertainment software were key to ensuring Megamart was able to differentiate itself in the market," the Coles Myer financial report stated. "Megamart stores were upgraded to reflect the needs of customers, and additional on-floor specialist selling team members were recruited and trained to ensure customers received the service expected in the highly technical electrical area.

"While electrical sales improved, the nine stores in four states did not provide the scale to deliver the required profit improvement." The transaction with Harvey Norman is expected to be fully completed by November 23.

Join the newsletter!

Error: Please check your email address.
Rocket to Success - Your 10 Tips for Smarter ERP System Selection
Keep up with the latest tech news, reviews and previews by subscribing to the Good Gear Guide newsletter.
Nadia Cameron
Show Comments

Cool Tech

Breitling Superocean Heritage Chronographe 44

Learn more >

SanDisk MicroSDXC™ for Nintendo® Switch™

Learn more >

Toys for Boys

Family Friendly

Panasonic 4K UHD Blu-Ray Player and Full HD Recorder with Netflix - UBT1GL-K

Learn more >

Stocking Stuffer

Razer DeathAdder Expert Ergonomic Gaming Mouse

Learn more >

Christmas Gift Guide

Click for more ›

Most Popular Reviews

Latest Articles

Resources

PCW Evaluation Team

Edwina Hargreaves

WD My Cloud Home

I would recommend this device for families and small businesses who want one safe place to store all their important digital content and a way to easily share it with friends, family, business partners, or customers.

Walid Mikhael

Brother QL-820NWB Professional Label Printer

It’s easy to set up, it’s compact and quiet when printing and to top if off, the print quality is excellent. This is hands down the best printer I’ve used for printing labels.

Ben Ramsden

Sharp PN-40TC1 Huddle Board

Brainstorming, innovation, problem solving, and negotiation have all become much more productive and valuable if people can easily collaborate in real time with minimal friction.

Sarah Ieroianni

Brother QL-820NWB Professional Label Printer

The print quality also does not disappoint, it’s clear, bold, doesn’t smudge and the text is perfectly sized.

Ratchada Dunn

Sharp PN-40TC1 Huddle Board

The Huddle Board’s built in program; Sharp Touch Viewing software allows us to easily manipulate and edit our documents (jpegs and PDFs) all at the same time on the dashboard.

George Khoury

Sharp PN-40TC1 Huddle Board

The biggest perks for me would be that it comes with easy to use and comprehensive programs that make the collaboration process a whole lot more intuitive and organic

Featured Content

Product Launch Showcase

Latest Jobs

Don’t have an account? Sign up here

Don't have an account? Sign up now

Forgot password?