Today, shares of Myer Holdings Ltd [ASX:MYR] shot up by 8.69%.
The share price increase could stem from a media rumour that its rival, David Jones, to buyout the company.
Incoming price war
Myer accounts have been going through some bumpy roads.
Revenue and sales were down last month, and Myer have decided to cut prices in order to compensate.
Despite Myer’s struggle, they have formulated plans for the purpose of lifting themselves out of the struggle and steer them into calmer fronts.
Both David Jones and Myer released catalogues with mid-season sales worth half the price.
Their new strategy has already been dubbed as the ‘New Myer’, as their drastic price switch is completely out of the company’s character.
Myer is aware that the high-end market is too small for themselves and their competitors, David Jones in particular.
However, their consistent brand restructuring and price drops contradicts this.
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