Myer has cut around 40 roles across its Apparel Brands portfolio – being Just Jeans, Jay Jays, Jacqui E, Dotti and Portmans – in what it considers a more “streamlined management structure model”.
Myer confirmed with Ragtrader that the 40 roles run across Australia and New Zealand, and only affect the Apparel Brands retail operations team. The group will redeploy team members if there are opportunities across the wider Myer Group.
As well as the department store network, Myer also manages Marcs, David Lawrence and Sass & Bide, with the latter being shut down for a planned overhaul and relaunch at a later date.
These job cuts across Apparel Brands follow the exit of Apparel Brands managing director Teresa Rendo, announced in late October last year. It is also understood there was a voluntary redundancy program across Myer department stores last year which resulted in about 300 departures.
Across the Myer group network, there are over 760 stores, including around 56 department stores, 5 stores across Sass & Bide, Marcs and David Lawrence and just over 700 in the Apparel Brands network.
A recent post in the Australian Financial Review estimated the job cuts will save Myer between $5 million and $7 million in costs.
A Myer spokesperson told Ragtrader that the overarching plan is to integrate Apparel Brands into the wider group, by simplifying processes and reducing duplication.
“We are introducing a more streamlined management structure model for Apparel Brands retail stores that supports operational excellence, improves customer service and reduces the amount of travel required from our field teams,” the spokesperson said.
“Management of the Apparel Brands store network will be state-based rather than by brand and is how many retailers globally manage their store fleet.
“The new retail operations structure will mean managers will have responsibility and oversight of all Myer Apparel Brands in a set region, reducing the requirement for travel and while ensuring an improved focus on sales, growth and team capability.”
Under the revision, each state will now have a ‘state general manager’ where previously all ‘national sales manager’ roles were based in Victoria. The state GM’s will report into the group GM of retail under Apparel Brands.
Regional managers will oversee a portfolio of centres across all five brands, rather than being brand specific.
All this comes as department stores globally face shifting consumer habits and spending. In recent years, this has led to the collapse of Smith & Caughey's in New Zealand and Saks Global in the United States. Saks managed Saks Fifth Avenue, Neiman Marcus, Bergdorf Goodman and Saks OFF 5TH. Over 40 Australian brands were suppliers to the US group.
To offset the shifting market, both Myer and David Jones in Australia have been diversifying income streams in recent years, with David Jones tapping retail media and Myer ramping up its loyalty play and expanding beauty ranges.
In the first 19 weeks of FY26, Myer reported a 3 per cent lift in total sales, with the Apparel Brands reporting a 1.3 per cent lift driven by improving performance in Just Jeans with mid-single-digit sales growth.
Myer is expected to release its first half trading update in the next month.