Billionaire retailer Solomon Lew has hinted that Myer should consider reducing the number of its department stores.

Lew made the comments on Monday after unveiling a strong profit result for his retail group Premier Investments, which includes stationery business Smiggle and clothing brands Just Jeans, Dotti, and Portmans.

He said he believed department stores were still relevant in the changing retail landscape, largely shaped by online shopping.

“I think there is space in the marketplace for all department stores, but it’s probably a question of how many stores they should have and their positioning in the market place,” he said.

It follows Citigroup analysts’ suggestion that Myer has room to close seven underperforming stores after the retailer revealed a disappointing half year profit and reduced its full year profit outlook.

However Lew, who used to have a stake in Myer’s rival David Jones, appeared reluctant in acquiring a department store chain when asked if he was interested in Myer.

“We don’t own any shares in any departments stores anywhere in the globe,” he said.

“We are focused on our business at this point in time.”

He said Myer was an important customer for Premier’s sleepwear brand Peter Alexander and for appliance business Breville, in which the group has a large stake.

“We hope Myer has a turnaround and in the interest of the industry, does well,” he said.

“There’s opportunities for all retailers it’s just a matter of getting it right.”

Myer’s costs have outpaced its sales growth in recent years, with the company’s new chief executive Richard Umbers admitting last week that the retailer had “lost relevance” and vowed to turn around the ailing retail business.

While most retailers have reported soft sales growth, Premier Investments has bucked the trend with a 9.1 per cent lift in net profit.

AAP