Myer CEO claims turnaround strategy is working following half-year sales increase

Department store giant reports stronger sales in its first half and revises guidance figures, attributing this to customer, brand and omni-channel turnaround strategy

Myer’s CEO is claiming encouraging first-half results for the department store giant and its turnaround strategy after seeing a slight increase in sales, even as net profits dipped by 4 per cent.

The company revised its full-year guidance range to between $66 million and $72 million, up by $2 million, after posting a 1.8 per cent rise in total sales to $1.79 billion for the 26 weeks to 23 January 2016. Sales were also up 3.3 per cent on comparable store sales.

In addition, sales growth averaged 5.6 per cent in 12 Victoria and NSW flagship and premium stories, up 7.1 per cent on comparable store sales.

Balancing against this was a drop in EBITDA by 7.7 per cent to $138.5 million. Net profits also came in lower, at $59.7 million down 4 per cent year-on-year.

Myer CEO and managing director, Richard Umbers, was positive about the results, saying they reflected early progress made in its five-year transformation plan, which puts an emphasis on brand rejuvenation and customer service.

“Only months into the first year on our five-year strategy, we are pleased with the early progress and positive customer response to initiative under the New Myer strategy, particularly in our flagship and premium stores,” he said.

Among the highlights Umbers flagged during the first half was the welcome reception customers have given Myer's renewed focus on premium brands. In the past seven months, Myer has rolled out more than 500 separate new brand destinations across its store network including Nine West, Mimco, Seed and French Connection.

Topshop and Topman have also been launched in six stores so far and more are schedule in coming months.

Umbers also used the results announcement to reveal men’s brand, Industrie, will be introduced as an anchor brand to the men’s casual range across more than 30 stores from August this year, along with womenswear label, Veronika Maine.

Omni-channel proved another area of improvement, with the online business delivering strong revenue growth of 70 per cent year-on-year, with profitability growth exceeding sales growth.

“This impressive performance results from our focus to deliver an improved omni-channel experience including an expansion of the in-store iPad service, strong take-up of click-and-collect, and upgrades to the myer.com.au site,” Umbers said.

“The recent launch of the Myer eBay store, which includes more than 20,000 products, further extends the reach of the Myer brand, with seven out of 10 Australian online shoppers already using eBay.”

Other significant changes made by Myer to its operating strategy have been a number of store closures, as well as the decision to quit several planned store openings.

Myer announced its New Myer strategy plans last November, a $600 million transformation agenda based on four key pillars: Customer-led offers, omni-channel shopping, wonderful experiences and a productivity step change. The plans include investing $150 million into product placements and $200 million into omni-channel capabilities.

Follow CMO on Twitter: @CMOAustralia, take part in the CMO conversation on LinkedIn: CMO ANZ, join us on Facebook: https://www.facebook.com/CMOAustralia, or check us out on Google+: google.com/+CmoAu

Join the CMO newsletter!

Error: Please check your email address.
Show Comments

Supporting Association

Blog Posts

​ It’s time to walk the walk and get creative about data

Why do people still treat data and creativity as if they are two separate streams, running in parallel but never quite meeting?

Jason Dooris

CEO and founder, Atomic 212

Tapping behavioural science for consumer influence

We know full well the business we’re in as marketers is really the business of choice. But recent discoveries from behavioural science are leading to a psychological revolution that challenges many of the accepted models of how communication, creativity and advertising influence a consumer’s preferences.

Kyle Ross

Account director, TRP

10 ways of changing your culture through self-awareness

Did you hear about the manager who always shot the messenger whenever they brought bad news? He eventually stopped hearing bad news. Unfortunately for him, this wasn’t because there was none to report.

Steve Glaveski

Co-founder, Collective Campus

There are lots of feature of microsoft dynamics crm by using these features you can grow your businesses. Some of them is lead management...

Dynamics Square

How Port Container Services is finetuning lead management with CRM

Read more

Agreed. I see the opposite problem quite often where people are tasked in an organisation just with "be creative" - thus offering no boun...

Dr Fiona Kerr

The great debate: Is data killing creativity?

Read more

By far, this is the best article I've come across so far that has a relevant information regarding the future of marketing. Although the ...

Jayden Chu

​Six ways to prepare for the future of digital marketing

Read more

These are some good ideas. You didn't touch on the overarching goals and results of brand loyalty. This article does a good job at provid...

hgsupport

Four ways to use social media to boost customer loyalty

Read more

This read like a PR PLUG for the agency. Very flowery language for the agency and very little details about the deal or the project.

Digital_Marketer

Why Tourism Victoria decided to go agile

Read more

Latest Podcast

More podcasts

Sign in