Challenging start to fiscal 2025 for Solomon Lew’s Premier Investments amid Myer tie-up

Premier Investments’ billionaire chair Solomon Lew says shoppers are becoming reliant on deeper and more frequent discounting as retailers struggle to entice consumers during non-promotional periods.

In his chair’s address at the company’s annual general meeting on Friday, Mr Lew noted the structural shift in retail shopping patterns as consumers continue to migrate towards key promotional periods.

“In particular Black Friday has become a key focus for both consumers and retailers. Global sales for the three-week trading period of Black Friday/Cyber Monday, while challenging, have not disappointed,” he said.

But with the first-half result reliant on the remaining key trading events of Christmas, Boxing Day, January and back-to-school sales, Mr Lew said it cannot view Black Friday performance in isolation from trading through the period.

Mr Lew also said the start of the 2025 financial year had remained challenging, with customers continuing to experience cost of living pressures across all global markets.

Premier Investments is behind brands such as children’s stationery business Smiggle and sleepwear retailer Peter Alexander.

It is currently working through a potential tie-up with department store Myer, where Premier is the biggest shareholder.

Myer will issue 890.5 million new shares to Premier to fund the purchase of its Apparel Brands which includes Just Jeans, Jay Jays, Jacqui E, Portmans and Dotti.

These brands posted a combined total of $790.7 million in sales last financial year.

Once finalised, Premier will hold 51.5 per cent of an expanded Myer that is now expected to generate more than $4 billion in annual sales and earnings of $250m. A vote on the deal is expected in January.

Mr Lew will return to Myer’s board as a non-executive director while also continuing to hold a 40 per cent stake in Premier.

Mr Lew on Friday said the combination was an “opportunity for us all to play an important role in the future of the Australian and New Zealand retail landscape”.

“The combination of Myer and the Apparel Brands will deliver enhanced scale to the combined group, more opportunities through loyalty, and extract growth throughout the design, sourcing and distribution process,” Mr Lew said.

Myer executive chair Olivia Wirth told shareholders at its annual general meeting earlier this week to vote in favour of the transaction.

Mr Lew on Friday said Peter Alexander continued to be the standout performer for Premier in the 2024 financial year, surpassing $500 million in sales for the first time.

“Peter Alexander continues to delight customers with its unique design led product, positioning the brand as one of the leading lifestyle and gifting brands for the entire family,” he said.

“Nine new stores were opened during FY24, and nine existing stores relocated or expanded to improve the customer shopping experience and broaden its customer base.”