Myer and DJ's in supplier re-jig race
According to a report last month in The Australian Financial Review (AFR) Myer's new management has extracted sleeker terms from its suppliers in an attempt to boost its competitive position.
A Myer spokesperson confirmed that new brands - including Rodd & Gunn and Nike - would be introduced, while terms would be re-worked with existing suppliers, such as Oroton.
"Myer still has a good relationship with this brand [Oroton] and we will continue to range a number of its products in our stores, including underwear and sunglasses. Oroton has, however, expressed its intention to push its leather offering into its own store concept. Myer has decided that, at this time, we are not at point where we are able to consider providing the leather range as an in store concept offer."
Myer will continue to range all other Oroton products and is looking at growing Oroton Group's Polo Ralph Lauren brand.
According to the AFR report, David Jones last month informed its top 150 suppliers it intended renegotiating supplier terms to keep abreast of Myer. David Jones was unavailable for comment at the time of writing.
Renegotiation of supplier arrangements was standard business practice, claimed Rod Levis, managing director of Cue, which has Cue concessions in all Myer stores and an exclusive arrangement with David Jones for the Veronika Maine label.
"The implication that David Jones is being overly shrewd or greedy is nonsense. The renegotiation of terms is a normal business response."