Myer has just announced some major changes to its retail strategy.
Its new approach to the market will be underpinned by more than $600m investment in total capital and implementation costs over five years.
It will also welcome the arrival of Topshop Topman into its stores from November this year, reporting a 25 per cent equity investment in Australian franchisee, Austradia.
Myer will also aim to improve its in-store customer experience through better service, targeted customer engagement and effective use of digital and Myer one.
The department store believes it has the potential to rationalise up to 20 per cent of its footprint to increase store productivity over a smaller footprint.
In a bold move, it will allocate around 41,000sqm of total space from under-performing categories to higher performing categories and services, whilst offering bigger space for up to 50 of its most popular stocked brands.
Myer CEO and managing director Richard Umbers said that the company's new five year strategy will have a strong focus on revitalising its product offering and investing in its best performing stores.
“The new Myer strategy is an energetic revitalisation of Australia’s best-loved retailer.
“It builds on our proud history and looks to the future with great optimism.
“The new Myer strategy is built on providing a more focused and relevant merchandise offer to serve a
more valuable customer and a better shopping experience for everyone who comes to our stores.
“The challenges facing the retail sector are well known, and we understand them deeply. Our strategic
response to these issues defines a clear agenda for success.”
The announcement aligns with the release of Myer's earnings for FY2015.
According to the company, its total sales have increased by 1.7 per cent to $3,195.6 million.
Today it has launched a fully underwritten two for five accelerated pro-rata non-renounceable entitlement offer to raise approximately $221 million at an offer price of $0.94 per share to boost funds for the five year plan.