Myer is rolling out a chain of clearance stores with entire floors of massively discounted clothes, shoes, and handbags.
The department store quietly trialled the concept at its Frankston outlet in Melbourne, slashing 40 per cent off already discounted products.
Deals are available on Myer’s own labels plus brands like Calvin Klein, Jack Jones, French Connection, Bardot, DKNY, Fossil, Doc Martins, and Levis.
Myer is rolling out a chain of clearance stores with entire floors of massively discounted clothes, shoes, and handbags
Shoppers reported picking up $250 jeans for about $100, Doc Martin shoes for $100, 60 per cent off DKNY handbags, $50 shoes, and $10 children’s clothes.
‘We’ve always had clearance sales; this is about aggregating them to one location within a store, one clearance floor within an existing store — and it’s getting a great response,’ chief executive Richard Umbers told News Corp.
The concept has been so successful, with a 30 per cent jump in new customers, it’s being adopted in another seven stores around Australia.
They are: Penrith and Roselands in Sydney, Pacific Fair on the Gold Coast, Logan in Brisbane, Knox in Melbourne, Tea Tree Plaza in Adelaide and Perth City.
They are: Penrith and Roselands in Sydney, Pacific Fair on the Gold Coast, Logan in Brisbane, Knox in Melbourne, Tea Tree Plaza in Adelaide and Perth City
Stock from brands like Guess, Nautica, Alannah Hill, Steve Madden and Dangerfield are now sitting on racks in new discount floors in those stores.
The ‘experimental’ outlets will also include drawcards like hipster barber salons, gourmet cafes and pop-up ice rinks.
Myer came up with the plan to defend against Amazon when it arrives from the U.S. later this year, lure in more customers, and to clear the way for new stock.
Surrounding flagship stores send excess stock that is parked in discount floors, freeing up space for new premium stock to be sold at full price.
Surrounding flagship stores send excess stock that is parked in discount floors, freeing up space for new premium stock to be sold at full price
‘It is still a quality retail offer so it is still merchandise with mannequins and the product is properly presented; it is not a junk shop,’ Mr Umbers said
Frankston’s 4,000sqm sale floor has colourful yellow signage and staff wear different uniforms to those on other floors.
Products aren’t just dumped there either, they are laid out on mannequins like other floors and tailored to the preferences of its customers.
‘It is still a quality retail offer so it is still merchandise with mannequins and the product is properly presented; it is not a junk shop,’ Mr Umbers told The Australian.
Myer will continue its usual strategy on other floors in all its stores and move ‘clearance’ signs out of its premium stores.
Mr Umbers said the strategy would help prevent ‘an ever-deepening cycle of whole store discounting’ that could be a ‘journey of no return’.
Myer will continue its usual strategy on other floors in all its stores and move ‘clearance’ signs out of its premium stores
Retail giant Myer’s profits have plummeted by 80% in the past year as brands are withdrawing from their catalogue and stores close across Australia.
The department chain’s net profit dropped from $67.9 million to an astonishing $11.9 million in 2017, the lowest figure since 2009.
The company are set to close stores in Adelaide, Canberra and on Sydney’s north shore.
Retail giant Myer’s profits have plummeted by 80% in the past year as brands are withdrawing from their catalogue and stores close across Australia
Myer on Thursday announced a 1.4 per cent drop in sales, bringing their total to $3.2 billion.
Increased pressure on the retail industry and the presence of international shipping giants including Amazon has decimated the Australian icon and CEO Richard Umbers says they have fallen well short of analysts predictions.
‘We are obviously disappointed to have not reached our target of exceeding last year’s NPAT of $69.4 million and that progress against our metrics that matter is slower than we anticipated,’ Mr Umbers says.
‘In the year ahead we will be rolling out further initiatives particularly in our strongly performing omni-channel business in anticipation of a further wave of change in consumer and competitor behaviour.’
Myer CEO Richard Umbers (center) says they have fallen well short of analysts predictions
The company have implemented a new business strategy in light of a changing retail landscape but are yet to reap the rewards.
Australian couture label Sass and Bide have had their book value written down by $38.8 million as a result of the dramatic drop in profits.
Myer have closed 74,670 square metres of stores since 2015 and will close the Hornsby store in Sydney, Colonnades store in Adelaide and Belconnen outlet in Canberra.