This article is from the Australian Property Journal archive
MYER has signed a joint venture with Nakheel Retail to open new stores in Dubai.
The expansion into Dubai opens a new chapter for Myer from its humble beginnings as a Bendigo store owned by the great Sidney Myer, a penniless Russian immigrant who arrived in Australia in 1899.
But unlike Australia where Myer has just one rival in David Jones, Dubai will offer tougher competition.
Myer yesterday said it is in discussions with Nakheel Retail an arm of the Dubai Government owned property group Nakheel, to establish a joint venture to set up department stores in the Middle East.
Previously called Istithmar Retail, Nakheel Retail is set to become the largest shopping mall developer in the region by 2012.
Development has started of 13 million sq ft of new retail space across five separate mega projects: Palm Mall at Palm Jumeirah a premier retail destination on the first Palm development; Palm Mall at Palm Deira an enormous retailing precinct planned for the first phase of the Palm Deira; Ibn Battuta Mall Phase II, doubling the mall’s size (140,000 sqm) with new themed courts and an expanded retail mix; India Mart, which will combine the very best of Indian wholesale and retail shopping with entertainment facilities; and finally Great Mall Dubai a ‘3-in-1’ mall concept at International City.
Myer did not elaborate on the locations of the department stores, except to say the first store is expected to open in Dubai in late 2009 or early 2010.
A Myer department store is likely to be housed within Nakheel’s five super malls under development.
The venture would be largely funded by Nakheel Retail, with Myer’s contribution capped at $US20 million spread over two or three years. Any transaction is subject to approvals of the Myer and Nakheel boards.
But Myer is likely to face stiff competition, unlike Australia where Myer has just one rival in David Jones, Dubai already has several established global branded department stores.
The largest of them all is the 192,000 sq ft Galeries Lafayette department store operated by France’s leading fashion house at the Emaar Malls Group’s Dubai Mall. Galerie Lafayette has 63 department stores and affiliated outlets worldwide.
Other retailers in the region include, New York’s Saks Fifth Avenue has two stores including an 80,000 sq ft store in the BurJuman Centre.
And finally British retailer Marks & Spencer has 14 stores in region, including a 64,000 sq ft store in Dubai Festival City – its largest store outside the United Kingdom.
Australian Property Journal
