Struggling department store Myer has announced a major strategy shake-up after it was revealed the store suffered a record $486million annual loss in 2017-18.
Despite having already slashed costs to remain competitive earlier in the year, sales for the battling retailer still plummeted by 3.2 per cent to $3.1 billlion.
As a result, the department store had a whopping $486million loss – its first since publicly listing on the Australian Stock Exchange in 2009.
Struggling department store Myer (pictured) has announced a major strategy shake-up after it was revealed the store suffered a record $486million annual loss
That said, before restructuring costs and significant expenses, the retailer’s net profit was $32.5million – but even that was 52.2 per cent lower than the previous year.
Recently appointed Myer chief executive John King described the result as disappointing and said ‘shareholders deserved better’, The Australian reported.
Myer’s share price was also affected, with it dipping more than five per cent.
Mr King promised to ‘put customers first’ after he announced a major review and overhaul of the struggling retailer that will see him visit 44 of its 70 stores.
‘With this customer in mind, we are making changes to our product ranges, store layouts, and online offering and we have worked to influence how we will trade Christmas 2018,’ he said.
As part of the strategy shift, Mr King said Myer will be implementing a new ‘Customer First’ plan aimed at improving the customer experience.
He said the customer-focused upgrade will enhance the shopping experience, improve efficiency ‘from factory to customer’ and accelerate cost cutting.
Despite the terrible decline in store sales, Myer (pictured) had a much better performance online
The chief executive also announced Myer will be launching a new and improved website later in the year.
Despite the terrible decline in store sales, the retailer had a much better performance online – no doubt the impetus for the revamped website.
Myer is set to save millions after ambassador Jennifer Hawkins (pictured) is released from her $5million contract in November
Over the last year, online sales were up 34.1 per cent to $192.5m, with total online sales now representing 7.7 per cent of the total retailer sales.
Mr King was brought on board by Myer in June to help rectify the damages caused by dwindling sales.
As part of his plan to recoup losses, the former boss of iconic British retailer House of Fraser has been hard at work slashing costs wherever he can.
He has already withdrawn from the traditional Myer tent at the luxurious Melbourne Cup Birdcage, and let go of senior executive management in an attempt to save money.
The retailer is also set to save millions after ambassador Jennifer Hawkins is released from her $5million contract in November.