Myer proves its worth
MELBOURNE: A series of aggressive structural and marketing campaigns are set to fortify Myer's ground-breaking half year profit results.
Unveiling the department store?s continuing ?50 month? turnaround strategy at a recent industry forum, Myer CEO Bernie Brookes confirmed the company's acquisition by Texas Pacific Group (TPG) last year had put it in a strong financial position. First half 2007 results showed earnings before interest and tax (EBIT) up $123 million, an 84 per cent rise from the previous corresponding half.
Brookes said while cut through would improve in categories throughout the department store, world class fashion would continue to play a key role in Myer?s offer, with an emphasis on catering to all price points.
?People have constantly asked if we?re going high end or going low-end. We?re not doing either. Today?s customers expect a broad range of brands across the price spectrum."
He said the company's first major marketing assault would be the launch of quarterly fashion and lifestyle title Emporium with media giant News Limited - whose projected circulation of 470,000 would ensure a rank as the third highest circulating women?s magazine in Australia behind Australian Women?s Weekly and Woman?s Day.
Behind the scenes, a world class supply chain management system will be further refined with four distribution centres in Brisbane, Sydney, Melbourne and Perth and three new international hubs in Shanghai, Shenzen and Singpore.
Brookes said this would significantly contribute to the reduction of lead times from China while additional customer service strategies ? with a mystery shopper program, a CEO hotline for customers and improved loyalty rewards all in the In addition, TPG?s interest in internationally renowned retail entities Neiman Marcus in the US and Debenhams in the UK had driven the store towards its aim of being an "international class" retail business, said former Just Group head Howard McDonald, who is currently overseeing Myer?s fashion strategy as consulting director.
New overseas buying arrangements would leverage the Debenhams, Neiman Marcus and TPG connection with new hubbing and freight arrangements to cut out 21 days from the current supply chain, he said.
"Inspiration is the watchword in terms of Myer?s fashion offer. It?s about covering the full range of fashion from luxury to value. Today?s girl can wear a $300 designer top, $40 jeans and a value pair of shoes, and she needs to be able to find all those things as part of a fully integrated offer under one roof."