C. Myers defers o’seas plans

Press, 22 November 1989, Page 40

C. Myers defers o’seas plans

NZPA-AAP Melbourne Coles Myer has deferred its overseas expansion plans to concentrate on Australasian development, the chief executive, Mr Brian Quinn said, Mr Quinn told the company’s annual meeting that directors still believed it would be appropriate for Coles Myer to expand internationally. “(But) we have established a number of areas within our existing operations where we can achieve an excellent return on additional investment,” he said.

Mr Quinn also criticised parties involved in the pilots strike, saying he found it incredible that none of the participants had the will and the capacity to end the dispute. “In my opinion it reflects no credit on any of the parties involved that this crippling and quite unnecessary dispute has been allowed to continue for so long,” he said. “The damage to the economy, including many small businesses is almost irreparable and the process of recovery will take a very long time.” Mr Quinn warned shareholders the

combined effect of the pilots strike and high interest rates were “biting deeply” into retail sales and profit results. He said it would depress sales and profits in the current half and most probably for the full year. The pilots strike had had a “catastrophic effect” on many sectors of the economy, not just tourism. “I believe that a great many people have grossly underestimated the effect of the airline dispute on the Australian community,” he said. Mr Quinn said the state of the retailing sector was "far worse than is being indicated by official statistics”. “The most recent figures issued by the Bureau (of Statistics) indicate fairly strong growth in the retail sector. However, based on our own results and anecdotal evidence within the industry, we believe the situation is far less rosy,” he said.

Mr Quinn said Coles Myer, Australia’s largest retailer and biggest employer, was now rated among the top three retailers in the world by credit agencies Standard and Poor’s and Moody’s Investors Service.