The Myer Holdings Ltd (ASX: MYR) share price has continued to sink.
Myer shareholders, watch out below.
As can be seen above, Myer shares have been on a near one-way ticket since it returned to the ASX in 2009. It is down 77% since November 2009.
Myer's falls are even starker when we consider the broader market, or S&P/ASX 200 (Index: ^AXJO) (ASX: XJO), is up 24% and other retailers like JB Hi-Fi Limited (ASX: JBH) are up 11% in that time.
Will the Myer share price ever stop falling?
Since 2009, the shopping centre scene and the broader retail market have undergone and promised change.
Firstly, shopping centres have shifted the relevance away from department store operators. For example, do you go to Myer or Westfield each weekend? Most consumers go directly to shopping centres — not department stores — to find their products.
If you want a television, for example, you will head to Westfield and find speciality electronics stores like Harvey Norman Holdings Limited (ASX: HVN) or JB Hi-Fi.
Arguably, this shift has been underestimated by the market.
Secondly, if you do not shop at Westfield, chances are, you will get some of your retail therapy online. In addition to the pressures from shopping centres taking a bigger slice of the pie, new competitive online stores are popping up.
Both of these consumer pressures are placing Myer, with its large stores and input costs, at a disadvantage.
What next?
Unfortunately for bricks and mortar retailers like Myer, there appears no end to the threat of online. In fact, it may even get worse before it gets better, with US and European online giants expanding in Australia.
Foolish Takeaway
I'm reluctant to (try to) pick a bottom in Myer shares because the odds appear stacked against it. It has some valuable assets and a decent brand. However, with shifting consumer habits and an increasingly competitive landscape, I think long-term investors' money can be better spent elsewhere.
