A UBS report on Myer department stores of Australia says the company needs fewer and smaller stores. It claims most of the group's 63 stores are likely to be at break-even and Myer is losing market share to online players and international fashion retailers such as Zara, H&M, and Uniqlo.

However, grave doubts subsist about whether Myer can bear the cost of of trimming its $2.7bn lease burden.

Premier Investments, Myer's largest shareholder, has disputed some of the figures given out by management, and is calling for shareholders to oust the board of the company in an extraordinary general meeting.