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T H I S I S S U E : Former Myer CEO Bernie Brookes believes it is "inevitable" that Australian department stores will need to write down millions in intangibles from their books amid, heightened scrutiny from auditors and shareholders. Speaking to IRW in the wake of a decision by David Jones parent Woolworths Holdings to write off $713 million from the value of the upmarket department store last week, Brookes said that many local retailers are carrying valuations that reflect an out-of-date retail landscape. "A lot of retailers have got very high values for brands and company intangibles on their balance sheets," Brookes said. "[It's] inevitable that multiple retailers, not only in Australia, but around the world, will have to write down. The value they've got in their books was [done] when their business was predominately bricks-and-mortar with good footfall. "Under the heavier and continued scrutiny of auditors and shareholders it is diligent... to ensure the value you have for intangible assets on your books is correct," he added. Myer, where Brookes was CEO from 2006- 15, has come under increasing pressure to re-assess the value of its own intangible assets recently, which were valued at $986 million in its 2017 annual report and far exceed its market capitalisation of $514 million. The department store will conduct a routine assessment of the value of its intangible assets as part of its interim result for FY18 in March. Woolworths Holdings' decision to write off around 34 per cent of the $2.1 billion it paid for David Jones in 2014 has piled yet more scrutiny on its ASX-listed rival, which flagged a management restructure earlier this ► RRP $14.95 I S S U E 2 1 7 4 Brookes: more write downs in the future BY MATTHEW ELMAS INSIDE RETAIL WEEKLY OPINION: Oroton – A tale of struggle The luxury leather- goods brand may have found a saviour, but the road into the future will be bumpy. p6 FEATURE: Grocery crosses the dark side As grocers prepare to combat the rise in on- line, dark supermarkets are on the rise around the world. p14 NEWS: Mon Purse to bag future funding Customisation acces- sories retailer eyes plans for international expansion fuelled by a new strategy. p5 NEWS: Seafolly dives into multi- branded game New CEO Paul Kotrba outlines plans for international expansion in 2018. p3 FROM THE SOURCE: Peri Macdonald, Central Park Mall How this shopping cen- tre is creating unique shared experiences for customers. p10 FEATURE: Big data – the future is now How automation is bringing the human side of retail to the fore. p16 News and views on the world of retail since 1972 31 JAN 2018 V I S I T : I N S I D E R E T A I L . C O M . A U

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