Myer, saying it must face the reality of a tough retail market, has redone the numbers on its turnaround strategy two years into a five-year transformation program.
The company says it needs to stay relevant in a “highly competitive and rapidly changing retail environment” and in the face of rapidly changing customer behaviour.
The tweaking of the New Myer strategy comes as the department store announces yet another set of negative sales growth numbers.
In the 13 weeks to Saturday, October 28, Myer recorded a 2.8% drop in sales to $699 million.
“Customers are increasingly shopping online, and traffic to shopping centres and physical stores is declining,” CEO Richard Umbers said ahead of an investor briefing day.
The strategy will have a heightened focus on the growth of Myer’s omni-channel business as well as experiential retail.
“All of Myer’s metrics in digital and online are moving strongly in the right direction,” Umbers says.
“Sales, profitability, click and collect take up, website traffic and conversion are all increasing.
“Cost of fulfillment, and fulfillment times are falling. Building on the strength of this business is a key focus going forward.”
Myer says it will accelerate the rollout of new retail concepts across its store network including six new food partners, five upgraded food offers and 12 locations for new beauty and grooming services.
The focus continues on costs, efficiency and driving productivity.
“The financial metrics we established at the start of the journey were developed during a period of relative buoyancy and were appropriate for the retail environment at that time,” says Umbers.
“We have recalibrated our metrics to reflect the tougher trading conditions and also to incorporate the evolution of the strategy into the future.”