Myer customer chief exits as retailer battles tough trading conditions

ASX-listed department store giant reveals deputy CEO and chief merchandise and customer officer, Daniel Bracken, is leaving and revises down FY17 profit forecasts

Myer has revealed its deputy CEO, chief merchandise and customer officer, Daniel Bracken, is leaving the company amid ongoing tough retail trading conditions. 

In a trading update provided to the ASX yesterday, the company confirmed Bracken was leaving the department store giant after a two-and-a-half year stint. Initially recruited as MD of marketing and merchandising, Bracken was appointed deputy MD not long after and then chief merchandising and customer officer in May 2016. It was at this time that Myer also appointed former Virgin marketing leader, Michael Scott, as its executive GM of brand marketing.

Prior to this, Bracken was CEO of the Apparel Group for three years, and also held several roles at Burberry including VP of strategy, business integration director and commercial and operations director.

During his time at Myer, Bracken has been key contributor to the retailer’s ‘New Myer’ strategy, a $600 million initiative aimed at rejuvenating the department store giant and improving its customer offers and experiences, omni-channel shopping capabilities, and productivity.

As part of this quest to become more relevant to modern-day consumers, Bracken worked to secure a range of high-quality global brands for stores including John Lewis, Jak + Jones Premium, Radley, Oroton and Saba. Since the launch of ‘New Myer’ in September 2015, he also oversaw more than 700 new or upgraded brand installations.

A spokesperson told CMO Bracken leaves this week, the reasons for which have not been disclosed. Instead of directly replacing him in the role, Myer has promoted Karen Brewster (former group GM of womens', mens' and childrens' fashion) to executive GM of product merchandising, and Damian Walton (group GM merchandise planning) to executive GM of product distribution. The deputy CEO post will be abolished.

But in its latest trading update, Myer cited continued weakness in retail trading conditions, particularly in July, and revised down its net FY2017 net profit from $69.3 million to between $66m and $70m.

Myer CEO and MD, Richard Umbers, said the June-July Stocktale sale has traditionally been an important profit generation period for the department store. New initiatives to engage customers, drive foot traffic and increase average transaction value had mitigated some of the impact of volatile and challenging trading conditions.

“We are responding to the challenging external environment in a way that preserves the integrity of the New Myer strategy that is built around customer service, engaging retail experiences and wanted brands, while continuing our focus on efficiency and productivity,” he stated.

However, there were dark financial spots across the group. Myer confirmed it is writing down its 20 per cent interest in the Australian Topshop Topman franchise, which went into administration on 24 May, worth $6.8 million. The company attributed its decision to being unable to secure a deal with UK-based brand owner, Arcadia Group, to continue running brand concessions in its store network.

Poor performance across the sass & bide brand over the past year also hit revenue figures, and Myer now expects an impairment charge of $38.8m as a result.

In its half-yearly financial results, Umbers claimed an encouraging first-half after seeing a slight increase in sales, even as net profits dipped by 4 per cent. The group posted 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.

It was off the back of this that Myer revised its full-year guidance range to between $66 million and $72 million, up by $2 million.

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

Latest Videos

Launch marketing council Episode 5: Retailer and supplier

In our fifth and final episode, we delve into the relationship between retailer and supplier and how it drives and influences launch marketing strategies and success. To do that, we’re joined by Campbell Davies, group general manager of Associated Retailers Limited, and Kristin Viccars, marketing director A/NZ, Apex Tool Group. Also featured are Five by Five Global managing director, Matt Lawton, and CMO’s Nadia Cameron.

More Videos

Great read. I agree that it should be a perfect balance between interacting with your customers and knowing your brand. As a business, yo...

Caroline Scott

7 ways CMOs can improve their customer engagement game

Read more

Very true. Team development helps improve collaboration among the team members. I was able to improve my team's collaboration skills by t...

Quent Sinder

Why empowering others can help make you a great leader

Read more

CRM is a very good software that can help you succeed in your business. In my company, this system has allowed me to improve customer rel...

Anna Janicka

Sensis rebrands to Thryv and brings business software to Australian SMBs

Read more

AI Leasing Assistants have finally arrived for the multifamily industry. With so many to choose from it can be hard to figure out which i...

Alice Labs Pte. Ltd.

CMO's top 8 martech stories for the week - 6 May 2021

Read more

Nowadays, when everything is being done online, it is good to know that someone is trying to make an improvement. As a company, you are o...

Marcus

10 lessons Telstra has learnt through its T22 transformation

Read more

Blog Posts

The playbook to develop strategic brand moats

Warren Buffet is an unlikely ally for marketers. But his belief businesses need strategic moats that increase their value in the market while acting as barriers to competitors can offer marketers a new playbook for brand building and driving growth.

Fabian Di Marco

Founder and managing director, Tzu & Co

Why if marketing is all you do, you’ll never be very good at it

OK, so you’re probably thinking: “Here comes another article to badger me about living in my bubble.” And also, “I bet this bubble-bashing piece will go on to explain how I can achieve better results through some heady dose of new life experiences, new routines and annoyingly different opinions on social media.”

Dane Smith and Toby Harrison

Ogilvy Australia

A leader’s role in rebuilding a culture of confidence

Every day, there are new predictions and studies on the future of work, the state of the economy and the unfolding global pandemic. All of which creates uncertainty and heightens the imperative of effective leadership.

Michelle Gibbings

Workplace expert, author

Sign in