n translate into the ability to diversify into new categories at a time when retail itself is in flux. Beauty and health on the horizon Lew has previously flagged health, beauty and cosmetics as an area of acquisition interest. The appeal is easy to understand for investors as it’s a category that is arguably resilient through economic cycles and is deeply brand-driven. Yet this same logic also unearths a challenge. Beauty is crowded, dominated by global giants such as L’Oreal and Estee Lauder, while fast-growing disruptors rely on influencer-driven branding and rapid innovation cycles.  Competing here requires either buying into established equity or being ready to invest heavily in marketing and product development. According to Danny Lattouf, partner and CSO at retail consultancy The General Store, the health and beauty sector is especially enticing for investors thanks to its lucrative margins, regular purchase cycles and emotional pull. “But it’s also one of the most competitive categories in retail – with one of the best retailers in the country dominating. For Premier, success would depend on finding a differentiated brand with room to grow, rather than being just another player in an already crowded space,” he told Inside Retail.  A tale of two brands The merger and acquisition talk comes as Premier’s core brands – Smiggle and Peter Alexander – face contrasting fortunes. “They’re two very much loved brands, notwithstanding that one [Peter Alexander] is doing a lot better than the second [Smiggle], with a lot of confidence that in due course, Smiggle will perform and expand its market share,” Lew reinforced. Smiggle, once a global growth story, is under pressure after leadership upheaval and an ongoing investigation into workplace misconduct. Smiggle’s struggles saw group profit decline by 22.5 per cent to $144 million in FY25. Peter Alexander, meanwhile, saw a 7.7 per cent increase in sales to $548 million in FY25. Its appeal across demographics and strong giftability make it a stabiliser in Premier’s portfolio. The contrasting performance is a reminder that even with a strong balance sheet, execution matters.  Lew’s legacy  Few industry figures loom as large in Australian retail as Solomon Lew. For decades, he has outlasted rivals, steered through restructures and emerged as both a shareholder activist and a hands-on retailer.  That history gives Premier credibility when it signals a new direction, but it also anchors the group in a legacy of opportunistic deals and a preference for control.  “Lew’s legacy is resilience and reinvention. He’s not afraid to pivot, divest, or double down, and that mindset is critical in a retail cycle that’s moving faster than ever. The risk is that legacy brands like Smiggle need more than just resilience; they need reinvention of their own,” Lattouf said. In Thursday’s media briefing, Lew reiterated his aversion to debt – “we don’t like debt” – highlighting a conservative capital structure that has protected the company in downturns.  At the same time, his ability to intervene directly in brand turnarounds means Premier remains synonymous with his leadership style. As Lew prepares to join the Myer board as a non-executive director, his influence is likely to extend further across Australian department store strategy, even as he balances the challenges that business is facing with his own.  Where Premier fits in the retail landscape The broader question is whether Premier remains at the forefront of Australian retail, or whether it is now best described as a niche portfolio business.  Following the sale of Just Jeans, Jay Jays, Portmans, Dotti and Jacqui E to Myer, its retail arm is smaller and more concentrated. Yet Premier’s agility and cash reserves set it apart from many of its listed peers, weighed down by debt or declining store portfolios.  Lattouf pointed out that Premier no longer resembles the sprawling retail empire it once was. “It’s now a sharper, more focused portfolio player, and that comes with both strength and risk,” he said.  “The strength is discipline; the risk is over-reliance on a couple of brands. In today’s market, leadership isn’t about being everywhere; it’s about winning decisively where you choose to play.”  Retail in Australia is evolving at speed, from the rise of online marketplaces to the rebirth of department stores through partnerships like Myer’s acquisition of Premier’s Apparel Brands. Lew himself described that deal as “a win-win… Myer’s acquisition, they will benefit greatly in their women’s apparel from the expertise and knowledge that exist in the five brands that they bought.” For Premier, the next chapter may be defined by a move into new categories. Beauty could be that pivot, however, only if Lew and his team can match financial discipline with brand-building creativity. Evidently, for Premier, the balance sheet is strong. The question is whether that strength translates into strategic transformation, or whether it remains a shield against the volatility of retail.  As Lattouf put it, “Premier has the balance sheet and the nous to play bigger than it looks, but the real test is whether it can turn focus into future growth.”