THE future of 90 jobs at furniture and electrical retailer Megamart in Sunshine is uncertain after parent company Coles Myer announced it would sell the store.
Coles Myer chief executive John Fletcher revealed last week that the company’s nine Megamart stores would be sold after reporting an $18.4 million trading loss for the first half of 2005.
Megamart Sunshine opened in November 2000 and employs 90 people, according to Myer corporate affairs manager John Gillman.
He told Star the company will initially try to sell Megamart as an ongoing concern but industry analysts expect up to four of the stores will be written off.
“We’ve got nine Megamart stores and we are focused on selling all of them,” Mr Gillman said.
He said the company was negotiating with a number of prospective buyers.
“We are trying to transfer the lease (of the Sunshine site) and sell it as an ongoing concern, including stock, and talk to any prospective buyers about the team there,” Mr Gillman said.
“But it’s pretty early days.”
No time frame has been set for the sale of the stores, he said, adding that the purpose of last week’s announcement was “to see what the market reaction would be like”.
Sunshine Commercial Association executive officer Ken Francise said it would be disappointing if a buyer were not found for Megamart Sunshine.
Stores like Megamart attract consumers to Sunshine, he said. “We understand that people travel around the Ring Road a long distance to come there,” Mr Francis said.
“We would hope that if Megamart in Sunshine does close it will not adversely affect the attraction of Sunshine to its customers in the region.”
Mr Francis said the association support another major retailer buying the store.
“We hope that people who come to shop at Megamart and use the other services around there including the courts, police station and the motor registration branch would spend a little time in Sunshine to enjoy our other offerings in the marketplace or the Plaza as well as in the strip in Hampshire Rd,” Mr Francis said.
Expressing confidence in the general retail outlook for Sunshine, Mr Francis said the potential loss of 90 jobs was a worry.
“We would be distressed if there was a serious loss of employment but if any of them were anxious to find a placement we would be happy to identify businesses who need experienced employees,” he said.
Overall, Sunshine is experiencing an increase in the occupation of retail premises, he said, and employment was “steady to positive”.
