This is Myer's turnaround plan

Photo: Graham Denholm/ Getty.

Myer today set out a a five-year, $600 million plan to restore profit growth by delivering an inspiring retail offer with improved productivity.

Sales have been weakening for Myer as shopper habits change, with some going in-store to try goods but then buying online from the cheapest vendor.

And its nearest rival, David Jones, now owned by the South African group Woolworths, has been pulling ahead.

Myer today reported full year sales up just 1.67% to $3.195 billion and a weak outlook for 2016. David Jones, however, reported sales up 6.4%.

CEO Richard Umbers, appointed in March with the job of reviving sales and profits, says the Myer strategy will put greater focus and investment into its best stores and most valuable customers.

This will mean a revitalised merchandise offer and transformed shopping experience to better meet customers’ needs in store and online.

The strategy, announced at the same time as the release of its annual results showing a fall in profits again, was created using advanced data analytics of Myer’s customer base and stores.

“The New Myer strategy is an energetic revitalisation of Australia’s best-loved retailer. It builds on our proud history and looks to the future with great optimism,” Umbers says.

“The New Myer strategy is built on providing a more focused and relevant merchandise offer to serve a more valuable customer and a better shopping experience for everyone who comes to our stores.

“The challenges facing the retail sector are well known, and we understand them deeply. Our strategic response to these issues defines a clear agenda for success.”

Here’s the strategy in one slide:

Part of the plan is to reallocate floor space from underperforming goods to new and higher performing categories and services.

This will mean concentrating on the 40 to 50 most wanted brands, a narrower offering.

And there will be more restaurants, cafes and event spaces, increasing Click and Collect as proportion of online sales and improved delivery times for online ordering.

Now READ: Myer is raising $221 million to cut debt after profits fall again

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