Myer reveals massive profit loss – so what will it take for you to shop there? 557



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Department stores are dying, it’s a fact. But truly, why are we not shopping there? This is a question many industry people are asking today as Myer posted a 23 per cent profit loss.

Just weeks after former CEO Bernie Brookes resigned and was replaced with Richard Umbers, today’s news couldn’t be worse. The shares are falling as well today and the sales growth is all but gone. So what is it that is stopping shoppers from walking through those black and white doors?

According to SMH, Myer’s profit for the half-year, ending January 24 was $62.15 million, down 23.1 per cent. The department stores announcement explained the drop, saying recent sales have been ahead of last year but below expectations and the company now anticipates operating gross profit margin pressure to continue during the second half.

Mr Umbers said, “What has happened since, of course, with the benefit of having the February results in and seeing the downward market pressure we experienced in February, we conducted a full management review, we then looked at the projections for the full year and it became apparent that we did have to make an amendment”.

He also said that there was a strategic plan in place to get shoppers back in store, with a four-pronged plan to boost growth by focusing on customers, look at brands, invest online and improve productivity in store and in its supply chain. But will that be enough? David Jones announced in February that it was focusing more on older shoppers, i.e. those who have known and loved the department store concept since they were young, so should Myer do this too? Ian Moir, CEO of Woolworths Holdings, the new owner of DJs, said older Australians are “a big market and it’s profitable and nobody else seems to want to do it…It’s deemed a bit unsexy and it’s crazy – [but] you can make good money in this”.

It makes you wonder why other shops aren’t drawing their attention to older shoppers – only around 50 per cent of our readers have said they shop online, so there’s plenty who are going into stores still.

Would you agree? Or do you think Myer will continue to market to the wrong shopper? Why or why don’t you shop at Myer?

Starts at 60 Writers

The Starts at 60 writers team seek out interesting topics and write them especially for you.

  1. Staff to help would be a good start!

    3 REPLY
    • Yep, not only can you not find anyone if you need help, you often can’t even find a staff member to take your money.

    • That is so true. I can never find a sales person to assist me. As I am not in the designer clothes category I have no idea where to find the clothing that suits me.

      1 REPLY
      • That’s exactly what I find. Once upon a time, it was women’s ware, sportswear, coats, dresses, etc. now it’s all different labels with each collection in different spots. You tour the store all day trying to find what you’re looking for. I just give up and I reckon so do many others.
        Of course, once you find something you have to trail all over the floor trying to find someone to serve you.

  2. We’re shopping, just not at Myer. Over inflated prices and no customer service, great combo really!

    8 REPLY
    • Absolutely. The last time I was looking for something I wandered out shaking my head at the high prices, the lack of care from the customer service (that’s a laugh) & thought I can do better online.

    • Yes I agree – the customer service has been very poor for years! I buy underwear at the after Christmas sales – that’s about all I can afford – prices too high, particularly in clothing – and not a good range anyway.

    • Yes the service was so bad we ended up walking out.Staff just standing the chatting,and we were standing there waiting.

    • service there is none staff chatting about what they were going to do on Sat. night when I said excuse me they just looked. I hope some big wig from myers reads all this.

  3. Customer service would help not enough of it these days!!!!!!

    3 REPLY
  4. I can only speak for myself, when I shop I want a bargain, and shopping online is so easy today and the service and postage are good and prices are a lot lower, also people are not spending because they don’t trust this Government it has eroded all confidence

  5. There is no more customer service anymore. Most of the store is tented out to individual companies and they can’t help in other areas than their own

  6. All the above. Myers no longer stock their own labels. It’s just a huge department store selling floor space to other brands. When you can shop in the individual stores and get better service.

    1 REPLY
    • Why is that I could buy 11 pairs of shoes in one store when every time the assistant put a pair in front of me they got cheaper, otherwise I would not have been able to afford such a number of pairs in one shop the go to a clothing shop and get Boss, Calvin Cline or Gant jeans for about 60 British Pounds $160 approx. oh this was in London. Wake up Myer I’ll shop online!!!

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