Department store giant Myer (ASX:MYR) announced the elimination of approximately 40 management positions across its newly acquired Apparel Brands portfolio, including popular labels Just Jeans, Dotti, Jay Jays, Portmans, and Jacqui E.
The move is a central component of Executive Chairwoman Olivia Wirth's strategy to integrate the brands into the broader Myer ecosystem following the landmark acquisition from Solomon Lew’s Premier Investments.
Myer expects to generate annual cost savings between $5 million and $7 million, reducing duplication and travel requirements across the 700-store network.
The restructuring comes as the retail sector faces significant headwinds, characterised by intense online competition and weakened consumer spending.
The pressure is evident in Myer's recent performance; while total group sales rose 3% to $1.52 billion in the first 19 weeks of fiscal 2026, the Apparel Brands segment saw a more modest gain of just 1.3%.
Investors reacted sharply to the news and broader market conditions, with Myer shares falling 6.1% to 46 cents on Jan. 28—a staggering 52% decline over the past year.
Despite the workforce reductions and the temporary closure of the Sass & Bide label for a brand revamp, Wirth is pivoting toward growth through the Myer One loyalty program, which boasts 4.7 million active members.
The company is also investing in high-margin categories like beauty and baby goods to bolster its turnaround.