Coles Myer has sold six of the nine of its loss-making Megamart stores to discount furniture and electrical retailer Harvey Norman. All six Megamart stores (Chadstone, Fountain Gate, Sunshine and Thomastown in Melbourne, Alexandria in Sydney and Coorparoo in Brisbane) are to be rebranded as Harvey Norma are on long-term leases. Coles Myer has not been able to make a profit on the Megamart stores since their first opeing in 1998.
Harvey Norman the market leader in electronic and computer retailing is also opening two new stores in Sydney that will co-incide withe the acquisitions. The expanshion by Harvey Norman adding to his existing 160 Harvey Norman stores comes as other major retailers seeking to sell key assets. Coles Myer has put its Myer department store chain on the market for an estimated $500 million, while Solomon Lew appears to be looking for a buyer for his Witchery group.