Myer’s future in Brisbane’s CBD shopping district is under a cloud as it refuses to renew its lease

Myer is not renewing his lease at a mall that has carried his name for more than 30 years, fueling fears for his future in the CBD.

The retail chain has decided not to renew its lease at the Myer Center in Brisbane’s CBD and will vacate the site in July this year.

Daily Mail Australia understands the decision came after months of lengthy negotiations with the landlord and follows several store closures across the country as part of Myer’s consolidation strategy.

This is despite the once ailing empire recently posting its best profit since 2014.

Last week, Myer posted a 24.2 percent increase in revenue to $1.884 billion for the 26 weeks ended January 28, while net profit rose more than 100 percent to $65 million, according to The Australian.

Retail expert Professor Gary Mortimer told Daily Mail Australia the decision to close the eponymous center ‘came as a surprise’.

“Clearly, Myer’s CEO, John King, has been able to turn the company around,” he said.

“Look at their half-year results, $1.8 billion in revenue – 24 percent higher than the same period last year.

“But what we’re seeing in Brisbane is a good example of the challenges retailers now face when it comes to renting space within a shopping centre.

“I think it’s less about the Myer brand and more about the bad conditions downtown.”

Professor Mortimer, who lives near the mall and often walks through it, said it was old and decrepit.

“I think Myer looked at downtown and saw it’s tired and needs investment and without that it’s incredibly difficult for a retailer to sustain a flagship store,” he said.

He added: ‘It is clear that John King has made significant cost savings for the company. They went through a process in recent years, like David Jones, where they closed stores that no longer served a community because demographics had changed.”

Myer posted sales up 24.2 percent to $1.884 billion in the 26 weeks ended January 28

A spokesperson for Myer said they were unable to reach “appropriate and reasonable commercial terms” with the landlord, but were still committed to maintaining a presence in Brisbane’s CBD.

John King, CEO of Myer, said: ‘While we remain committed to the Brisbane market, we have been unable to reach a reasonable commercial outcome with the landlord and will therefore continue to look for an alternative CBD location .’

The company said staff may work at other stores nearby.

A spokesperson for the center’s co-owners, Vicinity and ISPT, said they had no final plans for the center.

‘Proximity and ISPT examined a number of options for the centre, including a reduced contemporary department store and plans without a department store that we can now proceed with with certainty.

“We look forward to delivering a reimagined destination in the heart of Brisbane’s developing CBD and expect to share our plans soon.”