How Would You Make Myer Profitable?

confusedhuh on 09/10/2018 - 11:29
Last edited 10/10/2018 - 17:21 by 1 other user

You must have read if not - Myer posts 'disappointing' $486 million loss - article here - http://www.abc.net.au/news/2018-09-12/myer-full-year-results…

Went to the local Myer store to collect a few items bought online and as usual the customer service was atrocious, no one to be seen, finally found someone and he was on the phone for ages while the queue went to 5 people. When asked about a product staff keep pointing to each other instead of taking accountability for it.

The online store is equally bad, half the descriptions are either empty or have half baked information.

So here is the question, if you were made the CEO today for Myer what would be your top 3 strategies to turn it around ?

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  mshanann on 12/10/2018 - 12:27

  If I was CEO, I'd probably gamble and create a hi-tech Myer experimental store that essentially had stock only for display/try-on purposes only.

  The store would display thousands of the latest items, and for things like shoes / clothing, may have a common size out on floor for display.

  The customer would use an app on their phone (or display case) etc, to get realtime inventory to see if the store has other sizes that could be tried on. If customer was in-store, they could request for the item to be robotically delivered to a 'try-on' area or equivalent with realtime tracking progess (kind of like uber to see where you are in the queue).

  To try on items for different sizes, the customer would either need to be a myer hi-tech store member (kind of like costco membership), or pay an item charge capped at a daily rate.

  If customer was interested in buying the item, Myer could present a variety of different buying choices with delivery estimates - and not necessarily from Myer. E.g. same day / next day etc.

  Myer could thus get affiliate commission even if they didn't stock the item.

  If Myer didn't explicitly stock the item, the purchase kiosks could pass the sale on to Australian distributor, or request that the distributor forward the item to Myer - depending on whom you want the transaction to be handled with.

  Once the customer had made sufficient purchases through the system, their hi-tech store membership would become free.

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  DIVISIONX on 12/10/2018 - 13:18

  A few "all you can carry" events

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  gromit on 12/10/2018 - 16:11

  I don't think it is that hard.

  a) overhaul the online store sell a lot of stuff that isn't available in store.
  b) shrink store footprint size or sublet sections to other specialist retailers.
  c) focus the stores on high margin items like designer clothing and shoes, particularly brands that can be imported with little to no competition, Items that require less sales volume but items that people are more likely to want to see and try before purchasing.

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  AssociatedCheapsize @ MYER on 12/10/2018 - 19:06

  +1

  Have staff that are experts in the product. That can sell the product and have a great value proposition.
  Ex Myer staff.

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    confusedhuh on 15/10/2018 - 13:20

    hey wanted to knw as you worked for Myer, were senior management open to suggestions ? Were workers/middle managers/store front employees consulted during the decision making process or was it more like "we are doing so because head office has said so" ?

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      AssociatedCheapsize @ MYER on 15/10/2018 - 19:04

      +2

      Yes and no. Surveys were conducted but usually if they go with a strategy the store manager will take the order from above and implement the decision. HR was more consultative and put out surveys.

      Senior management during my time wouldn't know how to operate a register let alone help on the floor. They felt beyond it. That's a serious mistake.

      Store managers were actually fairly approachable and took visual merchandising suggestions or requested feedback on store specific sales.

      In addition to my comment:
      I'd like to add I feel senior management should be made to work on the floor at least once every week so they can get real time feel for the situation and also help mentor staff which will definitely assist in staff retention and retaining top talent.

      What's the point of getting the best staff whilst studying and then having them quit and work elsewhere because there's no shifts or no prospect of working at a management or senior level?

      Myer is built on stories and a great team culture so it can't operate on its strengths at this point.

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  TheBilly on 17/10/2018 - 21:26

  How Would You Make Myer Profitable?

  Just close it and focus on all the other billions their making through bunnings, kmart, officeworks, target etc.

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    Baysew on 17/10/2018 - 21:39

    Myer was ditched by Coles in 2006. Coles was later purchased by Wesfarmers.

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      TheBilly on 17/10/2018 - 21:39

      Who owns myer now?

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        Baysew on 17/10/2018 - 21:45

        Was purchased by Newbridge Capital from Coles. It was floated off via share issue at $4.10 share. The shares are worth $0.51 now. It is a bit like Dick Smith, only in slow motion.

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