Omni-channel a bright spark in Myer's mixed full-year results

CEO Richard Umbers says department store giant was disappointed not to reach NPAT targets but reported a stronger, customer-focused business off back of New Myer strategy

Myer’s CEO says the business is ramping up initiatives to accelerate omni-channel business growth after reporting mixed results in its full-year report.

The ASX-listed department store giant reported a 1.4 per cent drop in sales to $3.2 billion in the year to 29 July 2017, a decrease of 0.2 per cent on a comparable store basis. A significant contributor to this was its Q4 sales result, down 1.5 per cent year-on-year.

Notably, FY2017 NPAT was 2.2 per cent down from last year’s $69.4 million to $67.9 million, pre-implementation costs. Net profit came in at just $11.9 million after implementation costs were deducted, a drop of 80 per cent.

In a statement, Myer CEO, Richard Umbers, said the group was disappointed not to have reached its target of exceeding last year’s NPAT results, and acknowledged progress against key metrics was slower than anticipated.

A bright spark was Myer’s omni-channel business and its online store, which reported a 41.1 per cent increase in sales over the past 12 months. Umbers said omni-channel sales, including those made across 2500 iPads in-store, reached $177 million over the 2017 financial year, and represented 8.2 per cent of total sales in July.

In addition, click and collect had grown substantially and represented 15 per cent of orders in July.

Other strategic activities pointed to by Umbers on the customer front included the introduction of several high-profile brands, such as Forever New, Quicksilver, Roxy, Jak + Jones Premium and Darren Palmer Home, along with Myer’s support and experiential work around the Katy Perry Tour and Sydney ice skating rink. The retailer has also launched personal shopping suites at seven stores, upgraded fitting rooms at eight stores, and rebalanced labour hours in favour of customer-facing roles.

Moving forward, Umbers said the New Myer agenda in FY18 was about prioritising investments in omni-channel sales, as well as finding greater productivity and efficiency improvements across all assets. Over the past 12 months, Myer has closed three stores and today, it confirmed plans to close three more.

“We have made significant progress to deliver New Myer, which has assisted the company to withstand the challenging retail trading conditions characterised by heightened competition, subdued consumer sentiment and discount fatigue,” Umbers commented.

“Myer has become a leaner, more productive and efficient retailer, better placed to compete in a rapidly changing environment. In the year ahead, we will be rolling out further initiatives, particularly in our strongly performing omni-channel business, in anticipation of a further wave of change in consumer and competitor behaviour.”

Myer is nearly two years into its ‘New Myer’ strategy, a $600 million transformation plan aimed at turning the business around through customer-led offers, wonderful experience, omni-channel shopping and a productivity step change.

In July, Myer confirmed one of the key executives behind its plans, deputy CEO, chief merchandise and customer officer, Daniel Bracken, was leaving amid ongoing tough retail trading conditions.

Prior to his departure, 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.

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!

Error: Please check your email address.
Show Comments

Blog Posts

Innovations in retail will bring creative and technology closer than ever

While approaching a customer in a shop and asking what you can help them with is Retail 101, how many of us actually enjoy being approached? Generally, you have to give the forced, fake smile and say, “Just browsing, thanks,” while screaming on the inside, “just leave me alone!” Maybe it’s just me?

Jason Dooris

CEO and founder, Atomic 212

There’s a brand in my digital soup

Not a day passes by in the life of business executives where digital innovation or the prospect of disruption is not front of mind. This in turn, drives an unrelenting flow of questioning, discussion and strategy papers.

Jean-Luc Ambrosi

Author, marketer

Can marketers trust agencies again?

Unless you’ve been marketing under a rock, you’ll probably have questioned whether your media agencies are offering you transparency.

Nic Halley

Founder and managing director, Mindbox

Nice post Brad! very useful information. The retail stores are really mean for every brand I am agree with you. Now Online Service Market...

Srialto

The rise of online retail marketplaces and what they mean for brands

Read more

Minor correct Nadia, just wanted to clarify that the "Marketo consultants" that did this work, were actually Hoosh consultants

Fab Capodicasa

What it's taking for Edible Blooms to grow a stronger personalisation strategy

Read more

Im not surprise though, been in the industry for couple of years and I feel and see it with my tow eyes how eCommerce platforms innovated...

Jason Smith

Australia Post earmarks $20m for Australian ecommerce innovation investment

Read more

For marketers that are "going Agile" I recommend using Ravetree. It's a really powerful suite of tools for Agile project management, reso...

Janice Morgan

7 ways to run your marketing department like a software startup

Read more

Over the years very part of our lives has become technological. That’s why I am not surprised to see that Australian home loans are going...

GreatDayTo

Why Aussie Home Loans is embracing digital transformation

Read more

Latest Podcast

More podcasts

Sign in