Myer group general manager of marketing, Tara Lordsmith has resigned after less than one year in the role to return to the company she founded, LordSmith & Co. Myer did not release a statement on the Australian Stock Exchange (ASX) about Lordsmith’s resignation, despite the company always keeping shareholders up-to-date with staff movements.
In its stylish 2015 Annual Report, Myer chairman Paul McClintock (pictured) said that 2016 would be a transition year as the company invested between $100 million and $120 million to underpin future growth. However, Myer expects to return to sustainable profit growth in 2017.
Just days after Myer revealed its future direction, the retailer has seen its share price savaged, placing its $600 million strategy in doubt. In stark contrast, Harvey Norman offers are likely to be boosted following a strong recommendation today from Deutshe Bank that it is the leading retail stock to buy.
Myer is investing $600 million in the New Myer strategy, which is expected to deliver improved productivity, a re-energised range, in-store experience and market-leading omni-channel capability through relevant categories, wanted brands and locally tailored offers. The department store predicts the strategy will produce sales growth greater than 3% between 2016 and 2020.
New stores and refurbishments, along with an impressive online growth rate of 80% during FY15 were to thank for Myer’s 1.7% increase in total sales to $3.2 billion. The ‘click and collect’ business grew by 183% and sales on iPads in stores reached $20 million in the first 11 months, according to a company statement on the Australian Stock Exchange (ASX).
Mark Cripsey is set to improve Myer’s omni-channel retailing and customer data strategy in the newly-created role of chief digital and data officer before the close of 2015. Cripsey was formerly GM of Coles Online, and therefore brings specialist expertise in omni-channel retailing.