Myer’s share price is rocketing up. Here’s why.

The Myer Holdings Ltd (ASX: MYR) share price is up 14.89% in afternoon trading after announcing a partnership with Amazon Australia. That puts Myer’s share price up 165% from its March 20 low.

Today’s share price moves will come as unwelcome news to the host of investors betting against Myer. Myer is the second most shorted share on the ASX, with 11.3% of shares held by short-sellers.

The huge rebound since March hasn’t been enough to see Myer’s share price recover from the thrashing it took during the wider COVID-19 market rout though, which saw shares crash 81% from 15 January through 20 March.

Year-to-date shares are down 46%.

What does Myer Holdings do?

Myer operates 60 department stores across Australia. The company is also expanding its online retail footprint via myer.com.au, which now represents its largest store by sales.  Myer’s merchandise includes clothing, cosmetics, household and electrical goods, toys and general merchandise. Outside of its Australian operations, the company has sourcing offices in China and Hong Kong.

Myer is part of the S&P/ASX 300 Index (ASX: XKO).

What are Myer and Amazon going to collaborate on?

This morning Myer announced the launch of Amazon Hub, starting on 9 September. The Amazon parcel pickup points will be located at Myer’s Click & Collect counters in 21 Myer stores.

The partnership gives Amazon customers the option to have their parcels delivered to a secure Myer Hub, where they’ll also have access to Myer’s in store retail items and customer service team.

Addressing the new partnership, Myer’s chief customer officer Geoff Ikin said:

It’s solution led thinking for time poor customers, who can access Myer’s great range of services and brands that we believe Amazon customers will take advantage of when collecting their parcel. So for the customer, for Myer and for Amazon it’s a win-win scenario…

This will mean more customers coming into store, more regularly, to collect their Amazon parcel, or Myer purchases, and whilst there taking advantage of in-store services, such as beauty services and cafés– truly offering a one-stop-shop that integrates the online and offline worlds.

Amazon Australia’s operations director Craig Fuller added, “Not only does it provide our customers with more control, but it enables them to enjoy a quick and simple pickup experience at Myer’s network of conveniently located stores.”

With this new partnership, and Aussie households saving at near record rates during the pandemic lockdowns, Myer’s share price will be one to watch as the nation’s retailers emerge from the viral slowdown.

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Motley Fool contributor Bernd Struben has no position in any of the stocks mentioned. The Motley Fool Australia has no position in any of the stocks mentioned. We Fools may not all hold the same opinions, but we all believe that considering a diverse range of insights makes us better investors. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Scott Phillips.

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