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 newsletter!

Or

Sign up to gain exclusive access to email subscriptions, event invitations, competitions, giveaways, and much more.

Membership is free, and your security and privacy remain protected. View our privacy policy before signing up.

Error: Please check your email address.
Show Comments

Blog Posts

Building a human-curated brand

If the FANG (Facebook, Amazon, Netflix, Google) sector and their measured worth are the final argument for the successful 21st Century model, then they are beyond reproach. Fine-tuning masses of algorithms to reduce human touchpoints and deliver wild returns to investors—all with workforces infinitesimally small compared to the giants of the 20th Century—has been proven out.

Will Smith

Co-founder and head of new markets, The Plum Guide

Sustainability trends brands can expect in 2020

​Marketers have made strides this year in sustainability with the number of brands rallying behind the Not Business As Usual alliance for action against climate change being a sign of the times. While sustainability efforts have gained momentum this year, 2020 is shaping up to be the year brands are really held accountable for their work in this area.

Ben King

CSR manager & sustainability expert, Finder

The trouble with Scotty from Marketing

As a Marketer, the ‘Scotty from Marketing’ meme troubles me.

Natalie Robinson

Director of marketing and communications, Melbourne Polytechnic

It's a pretty interesting article to read. I will learn more about this company later.

Dan Bullock

40 staff and 1000 contracts affected as foodora closes its Australian operations

Read more

If you think it can benefit both consumer and seller then it would be great

Simon Bird

Why Ford is counting on the Internet of Things to drive customer engagement

Read more

It's a good idea. Customers really should control their data. Now I understand why it's important.

Elvin Huntsberry

Salesforce CMO: Modern marketers have an obligation to give customers control of their data

Read more

Instagram changes algorithms every time you get used to them. It really pisses me off. What else pisses me off? The fact that Instagram d...

Nickwood

Instagram loses the like in Australia; industry reacts positively

Read more

I tried www.analisa.io to see my Instagram Insight

Dina Rahmawati

7 marketing technology predictions for 2016

Read more

Latest Podcast

More podcasts

Sign in