Myer has outlined plans to invest up to $50 million in reviving its branding, marketing strategy and omni-channel business to counter the fall in profit. .
Myer, which recently appointed Clemenger BBDO Melbourne to look after its advertising, is plotting a “significant” Christmas marketing strategy and a refresh of the Myer brand.
Leveraging the new creative partnership and strengthening the brand were two stated strategic priorities for the next year.
The $35 million to $50 million investment will also go towards building its omnichannel strategy, better training and rewards for staff, customer service improvements and its Myer Exclusive brands programme where it makes a higher margin on ranges that are not available anywhere else in Australia.
Myer Exclusive Brands now account for 20.3 per cent of total sales.
In its full year results update, the retailer said the investment will be “important to delivering the operational improvements and capabilities required to underpin long-term, sustainable growth”.
The department store chain reported a 22 per cent fall in net profit to $98.5 million for the year ending 26 July 2014.
Comparable sales were up 1.2 per cent to $3.1 billion over the year, and up 2.1 per cent in the fourth quarter.
Myer said “significantly improved” digital direct marketing helped drive the 100 per cent rise in online sales over the year, and an increased transaction value.
Myer has also expanded its in-house digital team to drive its marketing and omni-channel business.
Former Apparel Group CEO Daniel Bracken joined the department store earlier this month as marketing and merchandising director.
This story first appeared on sister site adnews.com.au