I am a bit sad about the Lonsdale Street exit... although I concede that it will probably be necessary... Hopefully Bourke Street will be beautifully restored/refurbished.

From The Age (http://www.theage.com.au/news/national/myer-to-leave-lonsdale/2007/03/13/1173722467642.html):

Myer to leave Lonsdale

CITY icon Myer Melbourne is to be slashed dramatically in size after the company's management announced last night it would exit the Lonsdale Street building that makes up half the store.

In a clear sign that the retail giant's battle with competitor David Jones is heating up, Myer chief executive Bernie Brookes told Melbourne City councillors the city store was looking tired and badly needed a makeover.

Under the plan disclosed last night, Myer will nearly halve the amount of retail space it has in central Melbourne.

No product lines are to be cut in the $40 million revamp but a Myer spokeswoman said the flagship Bourke Street store's tiles, carpets, mannequins, coffee shop and fitting rooms would be overhauled.

Myer will sell the Bourke Street store, but lease it back for at least 20 years.

The Lonsdale Street site was likely to be converted into a mixed-use development with retail, hotel and serviced-apartment components, selling agent Mark Granter, from CB Richard Ellis, said.

The two heritage-listed buildings are likely to fetch more than $400 million, he said.

About 1000 administrative staff now in Lonsdale Street are to move to offices in the central business district, Southbank or Docklands.

Retail consultant Ross Honeywill said Myer's Melbourne store had been "significantly too large" for far too long. Selling the Lonsdale Street store was a wise move, he said.

"Myer stores have become really very cluttered, and brought into stark contrast with David Jones. It has been the 21st-century version of a department store, whereas Myer has been stuck in the 20th-century 'emporium' mindset," Mr Honeywill said.

Over the past three decades, department stores had deleted radically or reduced many of their once-traditional lines such as whitegoods and books.

"All department stores are really looking to go on a diet because they know they're carrying too much floor area for the number of relevant categories they've now got," he said.

Myer's Mr Brookes yesterday said there was no intention for Myer to move out of the CBD.

The Myer retail chain and its Bourke Street store was sold by the former Coles Myer last year for $1.4 billion to a consortium that included US-based Texas Pacific Group and members of the Myer family.


Also from The Age (http://www.theage.com.au/news/national/city-myer-for-sale/2007/03/09/1173166986032.html):

City Myer for sale

THE Myer department store in the Bourke Street Mall is back on the market with an asking price of more than $400 million.

The Myer retail chain and its Bourke Street store was sold by Coles Myer in March last year for $1.4 billion to a consortium that included US-based Texas Pacific Group and members of the Myer family.

The consortium was expected to refurbish the Bourke Street premises to revive its flagging fortunes and challenge rival David Jones.

A retail property source said the eventual sale price would depend on how much of the 70,000-square-metre property was sold and which floors were retained by the retail giant.

"I think they would probably want to lease back the ground floor that abuts the mall but I expect most of the Lonsdale Street premises will be redeveloped," the source said.

A Myer spokeswoman refused to confirm the listing yesterday, but the company is expected to make a formal announcement next week.

A spokeswoman for CB Richard Ellis, the agents believed to be handling the sale, also declined to comment.

Property sources said the Industry Superannuation Property Trust, which owns the adjoining GPO complex on the corner of Bourke and Elizabeth streets, would "move heaven and earth" to secure the building.

The trust recently paid almost $50 million for the nearby Strand Arcade retail complex.

SEE ALSO: The Myer Emporium Discussion Thread (http://www.skyscrapercity.com/showthread.php?t=362947)

Two pictures of the Lonsdale Street building:

http://img.photobucket.com/albums/v626/adonline/myer1.jpg

http://img132.imageshack.us/img132/4297/myeremporium29lu.jpg

This could be a good thing so far as the Bourke Street store being restored to it's former glory (hopefully) rather than guttted, but, I can't help and feel sad that this is the end of an era.

I worked in the Toy Dept all through High School and Uni on 6th floor Lonsdale. During a recent trip home to Melbourne, it was dissapointing to discover that the toy dept was no longer on the 6th floor in Lonsdale Stree, now all of the Lonsdale Street store is to go!!

Ohh well, I guess this sums up those imortal words from Muriel's Wedding, all to well..... "You can't stand in the way of progress!"

The Lonsdale St section of city Myer was always the arse end of the store and a rabbit warren that wont be missed that much.
Hopefully they will spend more than a paltry $40 million on revamping the Bourke St building.

Myer in the city is pretty dingy, especially Lonsdale street.. It desperately needs a makeover inside. Looks like a glorified Target at the moment. David Jones is a classier store and I think as a company is doing better than Myer.

Lonsdale entrance = steps to the street, bright sunshine, roasted nuts and buttery biscuit smells; less bustle

Bourke Street = teaming hordes, perfumes and freezing cold winds once past the air wall.

I much prefer the Lonsdale Street entry and the facade seems more imposing and harmonious too.

What will happen to the pedestrian walkway over Lonsdale St that links Melb Central with Myer?

This is very sad news indeed. I will keep saying this till the cows come home, but Myer shoudl move out of one building, refurbish that, move back into the refuirbished building and refurbish the other one and move back into that too.

They need to punch a huge hole through the middle of both buildings and open up the interiors, that way there will be better connection through from melbourne Central to Bourke St from all levels.

I think this is the wrong move and will spell the end of Myer Melbourne.

It's an inevitable move. The Melbourne City Myer store is just too big - it is designed for another age.

Will be interesting to see what happens to the Lonsdale St store, and as Qantas743 asks, what happens to the bridge between Melbourne Central and the Lonsdale St store as a result.

Years ago I imagined that they might gut the interiors of both stores and cut a huge hole and make a plaza or square in the centre...at little Bourke st. and make it a modern competitor to Melbourne Central. Now what will become of the Lonsdale store ??? renovation into more shops..an obvious link between Myer and Melbourne Central...or demolishion and replacement with low level shopping and offices / appartments above ??? Maybe even a Sydney..centrepoint like development....with a 450m observation tower on top.....heeehee...just dreaming !

Myer has let the stores deteriorate so badly over the last two decades that I don't really care if they stay or go now as long as it is restored and redeveloped.

I am just waiting for the big fight when the new owners apply for a planning scheme amendment to building taller than 40 metres above the lonsdale street store, it will be interesting to see just how high they try to go.

Myer has been the same for so long. Neglect of the facade and a dump of an interior, no natural light, dirty carpet, crowded displays, and generally a maze.
It needs a real overhaul. But I agree with Aussie Steve that it's a shame that both stores are going. Myer Melbourne is one of the largest department stores in the world, reputedly 5th largest, and cutting it down is a real loss.

I was just telling them in the Sydney forums that MYER is losing out. They also closed their Burwood store - 4 levels i think - with David Jones buying it out. The MYER closing down sale was 75% off ALREADY reduced stock. SO look at the upside, there might be a MASSIVE sale on. A friend of mine who works at MYER said they werent making anough profit and that other stores were closing down or going to be closed down soon.

I HATE DAVID JONES - It has the shittest stock! Very cheap looking expensive stuff for the elderly.

Why do these newspaper articles keep mentioning new fitting rooms? Are new fitting rooms meant to be be impressive?

I think it's a shame. The Herald Sun quoted the mayor as saying Myer was embarking on some sort of "innovative vertical retailing". I mean the hell is that and why is it innovating? They will only make their problems worse. Already in the store now it is the lower floors of the building where the most people are and the higher you go the more deserted it becomes. The same phenomenon can often be seen in any mall with more than one level.

I also think Myer do an appalling job at utilizing the space they do have. Financial Review said the entire building area is more than 100,000 square metres. So much of this space is filled with inventory or with simply nothing at all. Myer also tend to leave their mess behind and making it look pretty rather than actually cleaning it up. Level 3 in Londsdale is still filled with an industrial sized kitchen despite not being used in years. Meanwhile Men's Shoes is stuck out by itself in Lt Bourke St! Ditto with Men's Suits. They have 100,000 sqm to play with and they couldn't find somewhere to put ~200 sqm worth of men's shoes? Women's Shoes takes up nearly an entire floor!

I worked at Myer for a long time and they are prone to making ill concieved decisions regardless of who the owners are. Moving the cards up to level 3 was one of them. Who in their right mind wants to travel up three escalators to buy a birthday card that you can buy from the newsagent around the corner?

What I would have liked to see is Myer retain the lower few floors of both buildings and use the upper floors for hotel or office complex or something else. I think it's a better solution to have larger floorplates over fewer floors lower down then many more smaller floorplates going higher up. The Bourke St upper floors are even worse off than the Lonsdale St ones. At least Lonsdale St has a bridge from Melbourne Central that injects shoppers directly into the 2nd and 3rd floors. It's also odd how they hold DJ's up as a model when their store in Melbourne is spread out over three seperate buildings from Lt Collins through to the other side of Lt Bourke.

I also can't help but be suspicious that Newbridge Capital have little concern about the future "shopping experience" in a new Myer Melbourne in five years time because their plans extend as far as cashing out of their position in three or four years time. In any case it's not surprising that they are selling the real estate. Coles Myer were going to sell the buildings seperately anyway before Newbridge bought both Myer and the buildings.

It is quite disappointing that MYER are moving out because 1. it's obviously going to be much smaller and therefore Melbourne will lose a famous landmark and 2. knowing Melbourne projects the building will probably sit derelict for 5 years or so and, like the Southern Cross, squatters will move in and it will be one big dump in Lonsdale St.

IMO, ALL the footbridges will be removed.

It will not sit derelict. Why on earth would someone pay $400 million just to let it sit derelict?

What I would have liked to see is Myer retain the lower few floors of both buildings and use the upper floors for hotel or office complex or something else. I think it's a better solution to have larger floorplates over fewer floors lower down then many more smaller floorplates going higher up. The Bourke St upper floors are even worse off than the Lonsdale St ones. At least Lonsdale St has a bridge from Melbourne Central that injects shoppers directly into the 2nd and 3rd floors. It's also odd how they hold DJ's up as a model when their store in Melbourne is spread out over three seperate buildings from Lt Collins through to the other side of Lt Bourke.

I think this makes a lot of sense and I agree 100%.

It will not sit derelict. Why on earth would someone pay $400 million just to let it sit derelict?

I hope it won't sit derilict! That'd make me very sad...

I wonder what will happen to the Myer Aerial Crossover on Little Bourke Street? I hope this is retained... it is a significant part of Melbourne's architectual heritage...

http://img.photobucket.com/albums/v626/adonline/MyerDay.jpg

http://img.photobucket.com/albums/v626/adonline/18122006_Myer_Bridge_HDR04.jpg

Gotta actually disagree about the bridges. I think if they came down then it would add a lot of charm back to that area of the street, as you would be able to see more of the old myer buildings, and it would let more light into the street during the day.

The Myer Little Bourke Street bridge is a B graded heritage building under a heritage building so it will not be demolished.

Please remove the paint from the windows, provide some definition to the lovely Art Deco detailing on the facade and put in a lighter canopy out the front:

http://www.doi.vic.gov.au/doi/hvolr.nsf/LUDL/H2100/$file/myers%20melbourne_bourke%20street%20facade_%20jan%2006_jb.jpg

It could be one of THE Melbourne landmark buildings but at the moment it's like someone thinks the building is a mistake and tried to cover it up with liquid paper.

The Lonsdale Street building has suffered from the same treatment as well.

The Myer Little Bourke Street bridge is a B graded heritage building under a heritage building so it will not be demolished. Any idea what will happen to the Lonsdale St bridge?

This is the death of Myers...I give it less than 10 years. I hope at least the Lonsdale st building has some unique development instead of boring apartments or offices.

This is the death of Myers...I give it less than 10 years. I hope at least the Lonsdale st building has some unique development instead of boring apartments or offices.

You're kidding aren't you?

The new Myer owners are extremely experienced at retail. They wouldn't be committing to a 20 year lease with 10 x 10 options if they weren't.

The state of both stores is disgraceful and they need a kick in the pants.

LOL the death of one building does not bring about the demise of the entire chain. I would have thought Myer was doing ok in Sydney. Their shops like the city store, Bondi Junction and Chatswood do hefty trade.

Doesn't Myer have another building in Bourke St they are going to move into? That's what I heard!

Doesn't Myer have another building in Bourke St they are going to move into? That's what I heard!

They have another buliding in Little Bourke Street between Myer and GPO, they will incorporate this into the new development.

Myer have owned it for many years. It used to be a Telecom (Telstra) exchange.

Any idea what will happen to the Lonsdale St bridge?

What do you mean? Its not going to be demolished if that's what you're asking. And anyway, no one knows of any firm plans as yet, this is all speculation at the moment about where, what and when.

I'm going to go out on a limb with regards to the bridges: If Westfield or another shopping centre group get it, then it'll stay. If it's going to be turned into residential, they'll go.

I wonder about the bridge because it connects straight into another mall. Would someone like Westfield really want a multi level pedestrian bridge joining their development into a GPT one? Likewise the Strand Arcade which also adjoins the Lonsdale St building is owned by ISPT. ISPT also own the GPO development.

No one can say for sure what will happen yet because it really depends on who buys it. One thing I think though is that Myer is fast losing the status it once had and condensing the stores will further this. Myer used to be a Melbourne institution but now it is just another store not unlike just about another store in the city. From what I've heard Myer Melbourne is their best performing store in the country and reportedly attracts over 17 million shoppers a year. I can't imagine 17 million shoppers rushing to go to a store half the size.

I also hope something decent is planned for Bourke St. The media was quoting $40 million but then went on to mention new carpet, new fitting rooms, new tiles, new mirrors and other boring rubbish like that.

You're kidding aren't you?

The new Myer owners are extremely experienced at retail. They wouldn't be committing to a 20 year lease with 10 x 10 options if they weren't.

The state of both stores is disgraceful and they need a kick in the pants.

Don't you remember when Myer had the best computer department? Hundreds of people would be there "testing" the games. The sports department had areas for trying the equipment. Then there was Legoland. All this is gone and this is another backward step. Myer will be just another shop nothing special. The products in Myer can be found at other shops with far better customer service. The only thing Myer has going for it is its buildings. Now it will be just another boring shop. NO reason to shop at Myer.

The only good thing to this news is the end of the “vomit” smell of certain foods found on the ground floor next to the Mens clothing, worse than the perfumes at Bourke Street!

This is the death of Myer!

I'm really f***ing depressed over this! :(

It was like the 5th largest department store in the world wasn't it?
It was always a special place to visit. To me as a young child in the mid to late 80's, it was the only store I remeber as getting excited over.

When leaving the store with purchases, you really felt as though you had achieved in your mission to shop.

I agree it needs refubishing, but I can see it becoming just like any other department store you will find at a suburban Westfield etc.

Who ever takes over is not going to give a shit apart from the profit! Fuck Myer and Melbourne probably!

I remember the "5th largest" being thrown about as well. But I had a good look on the net and so no source to back it up. Still it is one of the largest.

it's nothing to get depressed over -- Myer is just a retail business and retail businesses need to move with the times to survive. Anyone can see the retail landscape has shifted markedly in the past two decades (more giant suburban malls, online specialists which are never out of stock). the Myer City Store has been an anachronism for years now. I feel nostalgia when I walk through there, sure, but that's not reason enough to keep propping it up.

(disclosure: i worked at myer for 5 years in my student days.)

I remember the "5th largest" being thrown about as well. But I had a good look on the net and so no source to back it up. Still it is one of the largest.

It was one of the biggest department stores in the world and at one stage in the 90s was almost as big as Macys in New York!!!

But now unfortunately it will be like any other boring-arse shit, sad department store.

Melbourne will lose a landmark, tourist attraction and a great department store.

Btw, does anyone know how big Myer Melbourne will be compared to Myer Sydney when this shit happens soon?

^^ I don't think it was ever close to Macy's NY. No source I suppose?

[QUOTE=Wilko;12207722]I'm really f***ing depressed over this! :(

It was like the 5th largest department store in the world wasn't it?

Myer was once the 2nd largest department store in the world. We had even heard about that 'stat' up here in Canada during the whole MYER IS MELBOURNE DAYS. Myer was 2nd to a department store in Chicago.

Melbourne will lose a landmark, tourist attraction and a great department store.
As much as I am saddened by the closure of the Lonsdale Street building, I've never been convinced that Myer is a tourist attraction. On a state level, the external architecture is significant. But does anyone actually bring international tourists into the city to see (and experience) Myer as a destination in itself? I doubt it - I certainly never have.

Working in Myer I had to deal with international tourists every day. Such a drainer.

I think Myer retail space is something like 70,000 going by the news articles and I think Macy's is about 90,000 (1 million square feet). I'm not sure how they measure it though with regrards to occupied space, or sales floor space, and so forth...

As much as I am saddened by the closure of the Lonsdale Street building, I've never been convinced that Myer is a tourist attraction. On a state level, the external architecture is significant. But does anyone actually bring international tourists into the city to see (and experience) Myer as a destination in itself? I doubt it - I certainly never have.

It could have been a tourist attraction at least nationally, that place had much potential. Although what can be expected in terms of creating a special shopping experiance/destination or even superior customer service when a corporation who's core business is in the supermarket business operating a department store such as Myer! Not that thats the case now and not that we are old enough to remember Myer berfor Coles Myer. (Coles Myer was mismanged for so long) Even Target turned to shit prior to Fletcher.

Before Coles aquired Myer, I heard it was much more of a shopping destination prior to the 1980's.

Myer used to be classy but the Lonsdale Street portion has been crap for ages, before the Bourke Street part began to deteriorate.
Maybe they need to bring back the famous bargain basement. So many old ladies where pissed off when they replaced it with the sports dept. & they probably lost a good many customers & good will in doing so.
I also remember not too long ago when David Jones was in the deep end of financial & profit s**t. How times have changed.

And agree with grollo, somebody paint the buildings facade properly. it oozes cheap & couldnt give a damn, which sadly reflects the inside too.

It could have been a tourist attraction at least nationally, that place had much potential. Although what can be expected in terms of creating a special shopping experiance/destination or even superior customer service when a corporation who's core business is in the supermarket business operating a department store such as Myer! Not that thats the case now and not that we are old enough to remember Myer berfor Coles Myer. (Coles Myer was mismanged for so long) Even Target turned to shit prior to Fletcher.

Before Coles aquired Myer, I heard it was much more of a shopping destination prior to the 1980's.

I always used to see loads of tourists. e.g. retired American couples, Asian tour groups, European back-packers etc.

I always used to see loads of tourists. e.g. retired American couples, Asian tour groups, European back-packers etc. I think you're kind of missing the point. In most cases, did they just happen to be passing through or did they purposefully seek Myer out as part of their travel plans? Myer is a major thoroughfare, so you'd natually expect many foreigners in there. I just don't believe that many of them woke up thinking "Oh, I look forward to visiting that famous Myer Emporium today".

I'm really f***ing depressed over this! :(

It was like the 5th largest department store in the world wasn't it?
It was always a special place to visit. To me as a young child in the mid to late 80's, it was the only store I remeber as getting excited over.

When leaving the store with purchases, you really felt as though you had achieved in your mission to shop.

I agree it needs refubishing, but I can see it becoming just like any other department store you will find at a suburban Westfield etc.

Who ever takes over is not going to give a shit apart from the profit! Fuck Myer and Melbourne probably!

I'm with you on this one Wilko......
I can remember travelling up from Gippsland on the old red rattler trains with my Nanna....during Christmas we'd go and meet Santa on the Myers Roof top Christmas garden, they had rides and everything up there.
Myers is a Melbourne institution...I don't give shit about whether any interstaters or people overseas have hear of it or not.

^^ I actually remember that in the mid 80's as a very small child.

I am still not convinced that Myer Melbourne did not have the potential to be a tourist attraction. It was so classy, so Melbourne once upon a time. To be so suburban, so westfield soon.

I think all this is good news. They can restore the Bourke St entrance to its original condition and unpaint those damn windows. Myer on Bourke is an art deco classic.

I just hope, what with all the changes, that nothing becomes of Mural Hall. Ideally now Myer could probably do with that space for merchandising. And on a non-architectural note, I also hope the changes mean they'll go more upmarket clothes wise. Men's clothing in Myer is dire atm.

the Myer Mural Hall is protected as part of the Heritage Significance of the site. No other internal spaces are protected. The Bourke Street facade is protected as is the 1956 renovations to the lower level of the facade. Although we may not like that, the 1956 renovatiosn show the modernisation of a major department store for tjhe 1956 Olympic Games and as such, it is very significant.

The whole of both Myer buldings are listed on the state heritage register including the interiors and the Lamson cash tube system . The mural hall has extra significance as do the Bourke Street windows.

The only thing that isn't protected is the 60's walk bridge.

I read an article on Myer in last Saturday’s Australian that said that Myer is doing very well and is expanding its store numbers throughout Australia.
I found this paragraph interesting……

“We believe we’ve got the opportunity to grow Myer significantly,” Brookes (chief executive) says.

The company is also engaged in a program of refurbishing its stores. By far the biggest refurbishment is central Melbourne where the elimination of storage areas and the purchase of an adjoining building will enable the group to sell the Lonsdale Street store while only suffering a small reduction in selling space.

So the way I see it, is that they really don’t need to sell the Lonsdale Street building at all!!
Bastards!! Sydney Myer would be turning in his grave.
By the way, does anyone know which adjoining building they bought?

The Lonsdale Street store building and next one down, the way it used to be.

http://www.thecollectormm.com/gallery/photography/City/slides/Myer2.jpg

http://www.thecollectormm.com/private/MyerLonsdale.jpg

Here's a pic I took today of the Lonsdale S t r e e t façade of Myer....

http://img.photobucket.com/albums/v626/adonline/MyerLonsdale.jpg

The whole of both Myer buldings are listed on the state heritage register including the interiors and the Lamson cash tube system . The mural hall has extra significance as do the Bourke Street windows.

The cash tube system still exists? Does it work at all?

It would probably work but they wouldn't use it anymore. Security go around and manually collect takings nowdays. Myer has a habit of using their equipment until it falls apart and is beyond repair, then they still try to squeeze a bit more out of it. Example 1: There is a freight lift in the Lonsdale St building that breaks down every couple of weeks or gets stuck on certain floors. The cost of repairs and lost productivity should have easily paid for a new one by now. Example 2: Their cash registers are all ancient Siemens' that are so old they can't get spares for them any longer. They are all constantly recycled and usuable parts cannabilsed to keep other registers working.

The two sites are a Melbourne Institution, but you have to look at the business separately from the buildings. With the growth of superstores like Harvey Norman, which Coles Myer tried to emulate with their Mega Stores (and failed), Myer has to focus on it core products. These are generally personal items such as clothes, perfumes, etc. Very few people go to Myer (especially the city store) to buy a fridge or a lounge suite. Their current masterplan to sell of the property assets, reduce the size of the city store and construct additional suburban stores has a great deal of merit. Myer is a business that sells personal products to consumers, it should not be distracted by trying to be a business that holds or develops property.

Some windows painted, others not, crappy old awnings - god what a mess!
I actually think this latest move is the best thing that could happen to Myer. Some of the worlds best dept stores work on the basis that boutique-is-better. Like Harvey Nichols in London. It's actually quite small, but very classy. Myer is better off down-sizing and concentrating it's redevelopment budget into a much smaller area. That way the Bourke Street store will become a real show-piece and make the mall alot more upmarket with GPO and David Jones and Myer all adding a bit of glitz. Myer currently lets the area down.
Meanwhile the new development of Lonsdale street will almost certainly require the windows to be stripped at the very least. I'm sure a currently rather tatty, redundant old wreck of a building will get a classy new make-over.

I love that tatty, redundant old wreck of a building .....:bash:

Some windows painted, others not, crappy old awnings - god what a mess!
I actually think this latest move is the best thing that could happen to Myer. Some of the worlds best dept stores work on the basis that boutique-is-better. Like Harvey Nichols in London. It's actually quite small, but very classy. Myer is better off down-sizing and concentrating it's redevelopment budget into a much smaller area. That way the Bourke Street store will become a real show-piece and make the mall alot more upmarket with GPO and David Jones and Myer all adding a bit of glitz. Myer currently lets the area down.
Meanwhile the new development of Lonsdale street will almost certainly require the windows to be stripped at the very least. I'm sure a currently rather tatty, redundant old wreck of a building will get a classy new make-over.

Maybe it's just me but I don't think $40 million is going stretch far enough to make all that much of an improvement. They want to shift everything over, remodel the Bourke St building, refurbish that disused building next door, and do it all without closing down the store even temporarily. To me $40 million doesn't sound enough.

IMO they should condense down onto the bottom 2 or 3 floors of both buildings rather than into all the floors of one building. Then the upper floors of both buildings can be used for something else.

Myer has just about finished its quick refurbishment of the Men's Department area on the ground floor of the Lonsdale Street building.

What Myer Melbourne needs to have in terms of departments is a kids clothing, tennage/young adult, womens & mens, toys, music/DVD, entertainment/electrical, kitchenware, furniture, whitegoods, foodhall, cafe, beauty products, etc. All those could be accomodated in the Lonsdale & Bourke Street buildings. What they should do is sell some of the "other" buildings, like the one the men's shoes are in in Little Bourke St, men's suits in Lonsdale St, and the building just east of the GPO on Little Bourke St. A rooftop cafe or courtyard would be great on either store and opening the windows ont he upper levels would help too.

Potential, potential, potential!!!

Maybe it's just me but I don't think $40 million is going stretch far enough to make all that much of an improvement. They want to shift everything over, remodel the Bourke St building, refurbish that disused building next door, and do it all without closing down the store even temporarily. To me $40 million doesn't sound enough.

I agree. When I was in high school (in 1996), the State Government decided to completely refurbish our school. It cost $1.5 million to do three standard state school buildings. If I extrapolate the size of the school to the size of Myer, it is obvious that $40 million will do little more than buy a few coats of paint and change the shabbiest patches of carpet.

In my opinion, those awful ceiling tiles in Myer should be removed from some sections of the building to reveal the original art-deco motifs behind them. And of course all the flooring needs replacing as well as a reconfiguration of the escalators. $40 million just won't do it IMHO.

What they should do is sell some of the "other" buildings, like the one the men's shoes are in in Little Bourke St, men's suits in Lonsdale St, and the building just east of the GPO on Little Bourke St.

I agree... having the suits away from the shoes away from the clothes is just absurd!

Agreed that everything is all over the place. You seem to enter Myer at one end and kind of wind you way around a maze of messy displays and then pop out the other end. Everything is so difficult to find, with bad signage and just a general feeling of claustrophobia with the low roofs, and small walkways.

Has anyone noticed that the ground floor men's wear department has been jazzed up, re-carpeted, re-arranged and given a tidy-up? It looks much better, but why bother, when you are about to sell and move out?

^ Because it took only about a weekend to do it. It's like renovation rescue where they do a really fast crappy job that still sorta looks alright. The carpet, for example, is just glued on to the tiles. The shelves are just modular things they bring in and stack in front of whatever was there previously.

BUSINESS
Myer is their store Retailer ready to unveil preferred buyer
NICOLE LINDSAY
5 June 2007
Herald-Sun

THE preferred buyer of the $500 million Myer flagship department store in Melbourne's Bourke St mall is expected to be revealed tomorrow.

The Myer shortlist is understood to include super fund ISPT, GPT, Westfield, Lend Lease and an offshore investor.

Myer chief Bernie Brookes is understood to favour a speedy resolution to the deal.

"They're a lot different from the Coles people," said one party close to the deal.

CB Richard Ellis is brokering the deal which is one of the largest offerings seen in Melbourne.

It also involves finding 20,000sq m of office space for Myer administration which will vacate offices on Lonsdale St. Myer has between 850 and 900 workers in the city.

Both of Myer's Bourke and Lonsdale street stores will be sold as part of the deal.

Myer's buildings cover about 110,000sq m of space in the two buildings which have a central city footprint of 15,000sq m.

Myer will lease back Bourke St but the new owner is expected to develop the Lonsdale St store.

It is expected to become a mixed-use development with ground floor retail, offices and apartments.

GPT, with more than $1 billion pumped into the Melbourne Central complex next door, is the hot tip to buy Myer. It has 400 shops, a 12-screen multiplex cinema and a 65,500sq m 51-level office tower.

GPT also has about $1.2 billion to spend. In April, it successfully closed a $900 million Shopping Centre Fund and bragged about how much money it had to spend on acquisitions and renovations.

ISPT has also been very active in CBD retail plays. It paid around $100 million for Midtown Plaza on the corner of Bourke and Swanston Sts just outside the Bourke St mall.

It also owns the GPO and Strand arcade.

Myer will spend $40 million on renovations to the Bourke St store, opening the first floor windows and unused boarded up space.

A former Telecom building on Little Bourke St will be included in the main department store.

The retailer has been using only 45,000sq m of the gross building area as its department store.

The company will sign a 20-year lease -- with four 10-year options -- for the revamped Bourke St store.

It is likely to end up with about 40,000sq m -- not much less than it already uses.

Mr Brookes has said the process will take about two to three years.

Myer is aiming to have 75 stores in the near future. It recently took over a store in Bankstown in outer Sydney that was vacated by David Jones.

And new Myer stores are due to open at Forest Hill and Werribee in July.

http://www.mailout.com/myer/images/melbourne21june2007/3045_header.jpg

Myer's transformation of its iconic Bourke Street store:

Scheduled to be completed by the end of 2009, the new Myer Melbourne will feature:


A state-of-the-art shopping environment, inspired by some of the world’s great retailers in London, New York and Paris;
An awe-inspiring glass-domed cultural centre, featuring fine dining, fashion parades, and other events;
Retention of the classic Myer windows in their current form;
Enhancement of the heritage-listed Mural Hall;
Retention of more than 90% of the existing retail floor space; and
Environment-friendly features, such as water harvesting and extensive natural light and ventilation.


The roof looks cool.

It won't happen.

Do you even try to engage your brain before you post?

Obviously not.

Merge this with new thread me thinks.

It won't happen.

Brilliant deduction after much obvious and careful consideration of the project.

It is going to happen.

Which is the thread re: Myer Ltd's space requirement and that ensuing bid?

That is still up in the air regardless of this latest news, yes?

I was in Myer today and noticed that small signs were up advising that the Myer Food Hall will be closed as of September 15th, 2007 as part of Myer's "Refurbishment and Restoration Programme". And it won't be replaced! :shocked:

I will be sad to see it go. This place is always so busy, I can't believe Myer is closing it down. Amazing.

Well, here's a photo I took last weekend. I will be back to shoot more before it is closed. I actually really like it's 1980's décor and the general feel of the place. This is a sad loss of a Melbourne icon.

http://img.photobucket.com/albums/v626/adonline/Myer_Food_Hall_2_small.jpg


From the Herald-Sun (http://www.news.com.au/heraldsun/story/0,21985,22258479-2862,00.html):


Myer's Food Hall's bitter end
Kelly Ryan

SHOPPERS will no longer be able to follow their noses to the enticing aromas of roasted nuts wafting from Myer's Food Hall.

The retail giant confirmed it will close the decades-old family food haunt next month when major renovations start on its city store.

While some gourmet goodies will be moved to level three of Myer's Lonsdale St store, shoppers were stunned by the announcement of the loss of a Melbourne landmark.

Trips to Myer's Food Hall were special childhood occasions for Gabrielle Power.

The St Kilda grandmother was yesterday spoiling her grandson with a trip to town for the same experience.

"It is very disappointing to hear the Food Hall will close because it really is a Melbourne icon and a family tradition," Ms Power said.

"I rarely come into town without popping in to the food hall because I like the Myer people there, they are always friendly and nice."

Generations of Victorians have enjoyed lolling near the lollies carried along a quaint conveyor belt, admiring racks of cute cupcakes and cream cakes and shelves of gourmet chocolates, international coffee brands, nuts and nibbles.

City office workers pour into the ground floor food hub to grab fresh sandwiches and snacks while weary shoppers always find a quiet corner to rest aching feet while enjoying a cup of tea.

A Myer spokeswoman said some food favourites would be found elsewhere in the store, but some would disappear permanently.

Nuts, fresh sandwiches, sushi and fruit and vegetables will continue to be served.

The Blackboard Bistro will remain in its central site on the ground floor of the Lonsdale St store.

It is hoped food hall staff briefed yesterday about the September 16 closure will get other jobs within the company, the spokeswoman said.

Myer's historic Bourke St store opened in 1911 with the Lonsdale St building up and running by the late 1920s.

Cafe-style food and gourmet takeaways have been a popular part of the Myer tradition.

Trips to town for tea and scones at Myer were a special event for generations of Victorians.

Visiting Myer's cafes and delicatessen section is no less a treat today.

The two-year renovation and redevelopment of the city department store will bring it into the 21st century.

But close attention will be paid to the history and social significance of the most important aspects of Myer, including its famous Christmas windows and its food traditions, the spokeswoman said.

Dan Martin, 92, is a Food Hall fixture, visiting daily for more than 20 years.

"I'm well known among the staff who see me every day and I don't like the thought of having to find somewhere else to go," Mr Martin said.

"They say it's dear but Myer has got very good food and it is a very popular place for lots of people to visit."

such a shame. i can clearly remember going there as a young boy with my grandmother.

My dad was telling me the other day how he used to go in the 50s with his nanny and what an adventure it used to be. He was disappointed when I told him it was closing.

^^same but i think the charm has gone IMO. i was walking through the food court the other day thinking it desperately needed a facelift. i really hope they don't screw this myer development up.

This has been a long time coming. The foodhall may be loved by the customers but it is not loved by the company. It has too many overheads, it needs to be staffed by people with particular skills, there are no economies of scale, productivity is low, wastage and equipment maintenance is high, and lastly there is simply too much competition these days.

I'm also pretty sure that since the 50s, there are now a lot more places to eat at in the CBD, so this isn't really much of a surprise.

I remember going there when I was younger. There would be nothing better to go to the foodhall on cold rainy days and get some nice things to eat.

Boy, is this a forum for reminiscing or what? lol

Yep the thing Ive always liked was the wonderfull aromas as you wandered around but it was always a bit pricey and sort of daggy.
Melbourne has moved on a lot with a much greater variety of shopping choices since Myers halcylon days which started to decline 20 years back.

I spoke to a friend today whose a quantity surveyor and he said that he will be starting work on the Myer project soon.

What he told me:

The dome is one of two options being considered for the roof, the other being a warehouse/factory style roof...but funky/arty etc.

But here's what's really exciting...the void in the main building will be CURVED rather than just straight up and down from floor to ceiling. Hard to picture but once he explained it to me it was pretty logical.

The bridge over Little Bourke St will remain for the time being and will not be touched however he was unable to tell me the future of the Lonsdale St bridge.

But here's what's really exciting...the void in the main building will be CURVED rather than just straight up and down from floor to ceiling. Hard to picture but once he explained it to me it was pretty logical.

nice. not crazy about the 'factory/warehouse' idea though. the last thing we need is Fed.Sq mark 2.

...he was unable to tell me the future of the Lonsdale St bridge.Let's hope it gets accidentally demolished. Good news that the 60s bridge on Lt Burke will remain tho. :banana:

let's just say the new myer head office will have some sensational interiors :)
and a pretty good base build too ;)

What about the exteriors? :)

I spoke to a friend today whose a quantity surveyor and he said that he will be starting work on the Myer project soon.

What he told me:

The dome is one of two options being considered for the roof, the other being a warehouse/factory style roof...but funky/arty etc.

Wow, thanks! Please keep us updated :)

I really like the dome idea personally... either way Myer is going to look a whole lot better soon!

As for the Lonsdale Street Pedestrian Skybridge, I am sure they'd be crazy to knock it down as it is a key link to Melbourne Central Shopping Centre and would add considerable value to the Myer Lonsdale site because of this, surely? As ugly as it is, I'm sure it won't be demolished for that reason.

As for the Lonsdale Street Pedestrian Skybridge, I am sure they'd be crazy to knock it down as it is a key link to Melbourne Central Shopping Centre and would add considerable value to the Myer Lonsdale site because of this, surely? As ugly as it is, I'm sure it won't be demolished for that reason.It'll look even more out of place shooting out of a revitalised funky new Myer though. Perhaps they could do it up a bit.

They should have put more thought into it when it was first built really. To have something so incongrous jutting out of one of the world's most architecturally important department stores defies logic.

Spoke to my friend again today whose working on the Myer redevelopment.

Unfortunately, it appears that they will not be going ahead with the glass dome but rather the second option I mentioned a few posts eariler, which is the "saw-tooth" factory/warehouse style roof. The reason is that the dome would cause the project to be over-budget.

He assured me that the void in the main building will be something spectacular and that the roof mentioned above will also look good however I am pretty pissed off that the dome will most likely AT THE MOMENT not be going ahead.

I'll believe it when it's confirmed.

Archibomber, you're too nice.

Planning Application should be available on the Council website in the next week or so.

is that doogie howser in your avatar? Lolz.

Vote 1 for the dome!!!

Worth a read:

http://www.melbourne.vic.gov.au/opm/bc/CTEE/meetings/C3_62_20070925.pdf

Worth a read:

http://www.melbourne.vic.gov.au/opm/bc/CTEE/meetings/C3_62_20070925.pdf

NOT HAPPY about the demolition of the former Telecom Building. Its a 19th century Victorian office building. This isn't the 1970's boom.

For once a real historical building is under threat and you hear nothing. Maybe cause the NIMBY's are too concerned about the pile of corrigated iron they might loose at Central Pier.

I'm no killjoy but I hope it somehow is integrated with the development. It would look good to have it clashing with the modern facade (think GPO next door). It would create a very interesting streetscape around that block.

What a difference a new management team can make.Myer is on the up!

Myer moves closer to float
http://www.theage.com.au/news/business/myer-moves-closer-to-float/2007/09/25/1190486269248.html
September 25, 2007 - 3:18PM

Department store chain Myer Group has moved a step closer to a public float after posting a solid improvement in sales after only a year in private hands.

In its first full-year results under new ownership, Myer reported sales were up 3.6 per cent - or five per cent on a like-for-like basis - to $3.29 billion for 2007.

It is also forecasting sales growth to continue in the current financial year, in a range between 3.5 and 6.0 per cent, to between $3.4 and $3.5 billion.
In March last year, Coles Group Ltd sold Myer to a private equity consortium led by US company Newbridge Capital, an affiliate of TPG, for $1.4 billion.

Myer executive chairman Bill Wavish said there was no strict timetable for the company to be re-floated on the stock exchange.

''I think the result in some ways makes it closer,'' Mr Wavish told reporters after today's presentation.

''Obviously we're saying that the building blocks are not fully in place at this stage.

''They need to be put in place, and we're going to accelerate the growth of the business.''

Mr Wavish singled out the dramatic improvement in Myer's profit margin from 2.3 per in 2006, when it was still with Coles, to 5.5 per cent in its first year under private equity ownership.

Myer's earnings before interest and tax (EBIT) exceeded its last guidance at the half year, surging by 147 per cent to $180 million.

''This result gets us off the floor. We've got a way to go (before floating),'' Mr Wavish said.

Mr Wavish said it might be ''a couple of years'' but it wasn't necessary ''to harvest all of the financial benefits'' before re-floating the company.

''I think it's good if you can go and allow the initial investors into an IPO (initial public offer) to enjoy some of those financial outcomes,'' he said.

Myer chief executive Bernie Brookes focused on Myer's return of
5.5 cents EBIT for every dollar of sales, saying the chain had not achieved more than 4.9 cents in the dollar over the past 10 years.

Myer's guidance for fiscal 2008 is to achieve six cents EBIT in every dollar.

Mr Brookes compared Myer's profit margins with its upmarket rival David Jones, which hit 9.6 cents return for every sales dollar.

''Without throwing a wet blanket on things, it is important to note that our future is still about building the business,'' Mr Brookes said.

''It's a good achievement, but it still says that there is a long way to go. All it does is get us to an average level of profitability with a significant upside.''

Earnings before interest and tax for the 2008 financial year is expected to be between $205 million and $225 million, up 14 per cent to 25 per cent.

''We see no worsening or bettering of the competitive environment,'' Mr Brookes said.

Myer has also significantly revised upward its capital expenditure this year, more than doubling it to $150 million from its initial target of $72 million.

It will spend the same amount in the following two years as well.

''The increase that we've now announced with capital is a significant message to the market to say that we're in this to grow the business,'' Mr Brookes said.

An increasing proportion of the expenditure will be directed to new stores, with plans to expand the chain to 80 outlets after 2010 - five more stores than the previously announced target.

By 2010, $60 million of Myers' capital expenditure will go towards the six new stores Myer plans to open that year.

Myer this financial year also plans to install a new point-of-sale system, boost customer service, complete 90 per cent of its 101 Business Improvement Projects and complete its information technology separation from Coles.

Myer said it had signed former Miss Universe 2004 Jennifer Hawkins as the ''face of Myer'' for the next four years and had re-established the Myer Santa parade.

The fire that destroyed its Hobart store last weekend will reduce expected EBIT by around $1 million.

In the short term Myer hopes to get back into its Murray Street site in that city to continue trading and it may look to develop another Hobart site in the longer term.


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