Myer is set to focus its priority on a ‘customer first’ approach after it posted a $486 million statutory net loss for the 2018 financial year.
Myer CEO and Managing Director John King, who made the financial announcement on Wednesday, said the results “are obviously disappointing and shareholders deserve better”.
Between FY17 and FY18, the organisation’s profit fell from $68m to $32m and sales fell more than $100m.
“Since joining Myer in June 2018, I have completed a thorough review of the business, including visiting 44 stores and have met with customers, team members, suppliers, brand partners and landlords,” Mr King said.
“Our plan is to put our customers first in everything we do.
“We will be working closely with our suppliers and brand partners to put customers first – in every action we take, and every decision we Make
As part of this approach, Myer will also introduce store changes tailored to their local customers, including store layouts.
It’s all about improving the profit density per meter.John King, Myer CEO and Managing Director
“Rather than wholesale closures, which I think are unnecessary especially when you’ve got profitable stores,” Mr King said.
The organisation is conducting “space-efficiency trials” at a number of stores in different states.
“The conversations with the landlords have been about space,” Mr King said.
“They’ll give us a contribution and we can re-lay the store to get a more profitable store with a lower rent and lower occupancy cost.
“It’s a win-win for both of us – we’ve had commitments from a number of landlords already.
“It’s all about improving the profit density per meter.”
Myer will also launch a new website later in September to “enhance the overall user experience”.
“In particular on mobile devices, with improved and faster search capability, clearer filtering and navigation, improved presentation of merchandise and clearer, more engaging brand and editorial journeys,” Mr King said.
“Elsewhere in the business, we have reduced costs that do not directly benefit the customer or enhance their experience in store or online.
“This includes removing a number of executive and management roles to put in place a more streamlined and accountable structure at the Support Office that is more closely aligned with our customers.”
A Myer spokesperson said they did not publish the breakdown of financial results for each store.
Myer: financial year 2018 results and statements
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