New Myer strategy makes “pleasing progress”.
Myer sales increased by 2.9% to $3.29 billion, or up 3% on a comparable store basis, for the 53 weeks ended 30 July 2016, marking the first year of the New Myer strategy. Comparable store sales in flagship and premium stores in Victoria and NSW jumped 5.6%. Meanwhile, omni-channel sales increased by 74% and profit grew at a faster rate than sales.
Myer CEO and managing director, Richard Umbers said, “After 12 months in our five year New Myer journey, we have made pleasing progress on our transformation and at the same time delivered a net profit result in line with guidance (NPAT $69.3 million).”
“There is no doubt that as a result of our strategy, Myer is a measurably stronger business today than it was a year ago. Our early progress shows Myer in a new light, where focus on customers, brands, service, efficiency and productivity is evident in our results,” Umbers said.
Since August 2015, Myer introduced over 850 new or upgraded brand destinations and improved customer service, particularly in flagship and premium stores.
“We still have a long way to go but we are moving in the right direction. In the first 12 months we have made a number of critical investments to build a solid foundation from which we will continue to execute the strategy,” he added.
Myer will exit its Logan store in FY2018 and will not proceed with a planned store in Darwin. These are in addition to previously announced store exits at Brookside, Orange and Wollongong in FY2017 and the decision to no longer proceed with planned stores at Coomera and Tuggerah. Myer will also hand back space at stores in Cairns, Blacktown and Castle Hill in FY2017.
Myer will also commence refurbishments and upgrades at a number of stores including Melbourne, Sydney, Maroochydore, Eastland, Doncaster, Chatswood and Pacific Fair.
“In 2017, we will be accelerating capital investment in our priority stores. The newly opened Werribee store demonstrates how we are tailoring the Myer offer to our local customers. Our new store at Warringah, set to open in November 2016, will be the first physical embodiment of our customer led New Myer strategy,” Umbers said.