Fresh opportunity in store for Myer

MELBOURNE: Myer's ownership change represents an opportunity to end its discounting spiral and emerge as a fashion retail leader, according to industry commentators.
The department store - acquired this month for $1.4 billion by a consortium comprising Asian buyout fund Newbridge Capital and the Myer family - would benefit from private company status, said Australian Centre for Retail Studies (ACRS) executive director Amanda Young.
"It will allow them to take risks and be less hooked on the discounting drug; good news not only for Myer but for many retailers.
"What Myer has shown with [Melbourne youth fashion offer] The Basement is that it can be a real force in fashion retail," Young said.
Stephen Stanford, managing director of accessories wholesaler Fun Accessories and a long-term Myer supplier, described the resolution of the ownership question as "positive".
Newbridge - which had gained a reputation for rejuvenating major department store brands including UK-based Debenhams and US-based Neiman Marcus - had an "excellent track record", he said.
Womenswear label Cue - which operates 45 Myer concessions - agreed.
The involvement of the Myer family - entailing a stake of around 10 per cent - would also enhance the store's performance, claimed Cue managing director Rod Levis.
"Are we concerned about a change in management? Perhaps. But we are fortunate enough to have the history of success together with current performance statistics that should gain the support of incoming management.
"[Outgoing Myer managing director] Dawn Robertson truly deserves much credit for getting Myer's fashion image back on the map," Levis said.
Womenswear label Feathers' proprietor Margaret Porritt - who operates three Myer concessions - said she was "not concerned" that incoming Myer head Bill Wavish - formerly head of supermarkets at Woolworth's - was from a supermarket background.
"If the force behind Neiman Marcus has appointed Bill Wavish they probably know what they're doing."
Citigroup Investment Research senior retail analyst Craig Woolford estimated Myer - which comprises around 11.5 per cent of the department store and fashion retail market - would aim to lift sales per square metre by around 10 per cent.
While Newbridge confirmed its strategy would take the stores up-market - working with Australian designers to develop exclusive Myer lines while also remaining "broad-based" - ACRS' Amanda Young warned against focussing too much on the high-end customer.
"The Australian experience has shown that there simply aren't enough customers in the high end market. The best strategy would be to become more focussed on the different market segments and tap into each of them with a clearly defined offer."
Staff training and presentation were lingering issues, Young added.
"If Myer is going to assert itself as a fashion destination it needs to present a livelier image of its staff. The days of the 'white shirt, black skirt' corporate uniform are numbered."