The retail component of Myer's capital raising has fallen embarrassingly short, with mum and dad shareholders taking up just $3.7 million worth of shares in an entitlement offer Myer hoped would bring in about $120 million.

The offer was announced on September 1 with a price of 94¢ and was almost immediately under pressure when Myer's share price fell to 90¢ two days later. The stock closed at 86¢ on Monday.

The offer closed on Thursday and Myer announced on Monday afternoon that shareholders had bought only about four million new shares.

Myer's retail share offer has come up very short of its target. Photo: Jim Rice

Despite the weak uptake, a Myer spokesman said the company had raised the amount it wanted because institutional investors had over-subscribed to an earlier share offer.

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"We're really pleased with the result because we set out to raise $221 million and we raised $221 million," he said.

Goldman Sachs fully underwrote the issue.

Myer's share price has been hammered by market volatility and fears chief executive Richard Umbers and his team will not be able to pull off their $600 million turnaround strategy.

The retail giant outlined plans this month to close underperforming stores and focus on recognised brands to attract premium customers and drive store traffic.

The five-year strategy is aimed at shaking up product range and improving customer experience in an effort to end a 20-year sales decline and take on David Jones.

A key element of the plan is the exclusive rollout of Topshop and Topman concessions in 20 stores starting in November and the purchase of 25 per cent of the fast-fashion brand's Australian franchisee, Austadia.

Analysts were sceptical when the retail entitlement offer was announced, with CBA analyst Andrew McLennan suggesting "retail investors won't want a bar of it".

Myer's underlying net profit fell 21 per cent to $77.5 million last financial year.