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Myer executive admits poor customer service is rife at department store

IN JUST a few blunt words, one of Myer’s most senior executives has called out the big problem that drives customers mad.

The slow death of the department store

ONE of the most senior managers at Myer has furiously called out a culture of poor customer service at the under-pressure department store — and he’s summed it up in five blunt words.

In a leaked letter to staff, stores general manger Tony Sutton said an “I don’t work for Myer” attitude had pervaded the business.

It was “unacceptable” and staff who didn’t buck their ideas up could be barred from entering the shopfloor, he said.

Mr Sutton’s comments come as department stores kicked off their mid-year sales, desperate to tempt customers back in store with bargains of up to 70 per cent off. Myer, which has been without a permanent chief executive for months, is furiously trying to turn around a half-billion six-month loss as it struggles to pay ruinous leases while customers walk out the door to fast fashion and online retailers.

The Melbourne based retailer is trying to turn around a half-billion-dollar loss.
The Melbourne based retailer is trying to turn around a half-billion-dollar loss.

Part of the reason is because of the perennial department store bugbear. There you are, trying to find a medium in a sea of XXLs, and often a staff member is nowhere to be seen. Those who are visible are having a natter in a corner, far away from customers.

A retail expert who spoke to news.com.au said the “overwhelming criticism” Myer shoppers had was the lack of staff. If management hoped to steady the venerable retailer’s fortunes, they had to employ more staff.

The memo from Mr Sutton, dated May 14, is particularly focused on staff in concessions, or what Myer calls “brand partners”. These are people who work in Myer stores but are officially employees of other companies, such as Marcs, Cue, Dyson, Nespresso, Industrie or Royal Doulton.

This division meant too many customers were being left baffled and frustrated by concession staff that were giving them the cold shoulder unless their queries directly related the brand they worked for.

Myer stores general manager Tony Sutton sent the memo to concessions staff. Picture: Stuart McEvoy
Myer stores general manager Tony Sutton sent the memo to concessions staff. Picture: Stuart McEvoy
The memo says there is an ‘I don’t work for Myer’ attitude.
The memo says there is an ‘I don’t work for Myer’ attitude.

POOR SERVICE
“An ‘I don’t work for Myer’ attitude, where brand partner team members refuse to assist customers in Myer stores is unacceptable. We expect Myer and brand partner team members to work in partnership in store, operating as one team,” the memo stated.

“Unfortunately, feedback indicates that customers continue to experience this poor level of service.”

Mr Sutton said “we must fix this” and concession staff would be expected to deliver “wonderful customer service for all customers”, whatever product they were looking for.

And look out any non-Myer staff member who doesn’t toe the line. “Failure to meet these standards … will be viewed seriously and may result in Myer requiring that you do not return the relevant team member to work at Myer,” Mr Sutton wrote.

However, the edict could lead to the incongruous position of an employee of one brand helping a customer buy a product from a rival retail brand. That’s something big names like Country Road might not be too thrilled by.

The letter was sent to concessions who work within Myer. Picture: AAP Image/Joel Carrett.
The letter was sent to concessions who work within Myer. Picture: AAP Image/Joel Carrett.

‘THIS IS WHY PEOPLE ARE SHOPPING ONLINE’

All it takes is a look at social media to see the anger of department store customers.

“The answer to (Myer’s) financial woes may be, I don’t know, allowing customers to buy things easily and quickly?” said one customer.

It’s not just Myer. On Twitter, customer Anne Barklimore said David Jones was just as bad.

“Today, in David Jones waiting at a counter to purchase gloves, I had to phone the store to ask for a staff member to come to the counter. Sales seemed less important than rearranging shoe displays,” she tweeted.

Brian Walker, a consultant with Retail Doctor Group, told news.com.au that staffing should be a priority for newly minted chief executive John King, who takes up his post next week.

“The overwhelming criticism of Myer from customers is that they can’t find any staff,” Mr Walker said last month.

But Myer would have to employ more of its own staff rather than relying on other retailer’s to do their work for them.

“The board are going to have to take a punt here, put financial pain before gain and put more people working in stores.

“Mr King’s first step is to over deliver on service levels and kill customers with kindness.”

The man sitting in the plushest office in Myer’s Melbourne HQ, executive chairman Garry Hounsell, has said as much. Speaking in March as the company’s worst ever results were announced, he said there would be a “renewed focus on product, price and customer service”.

The store has also launched a commission program for staff where they receive store vouchers if they hit targets based on sales per hour and customer feedback. That is paired with more training and better deployment of floor staff, reported the Herald Sun.

Myer has said staff must do more to help customers. Picture: Stuart McEvoy
Myer has said staff must do more to help customers. Picture: Stuart McEvoy

Myer would not comment on the letter to concessions. However, in Fairfax, a Myer spokesman reiterated that concession staff were either expected to help the customer themselves — including ringing up the purchase — or they should find an appropriate member of staff who can help.

In March, Myer was accused of “racially profiling” an Aboriginal shopper after it was claimed he was followed around a store in Forrest Chase, Perth.

Shem Garlett wrote to Myer after the experience when he was shopping for a suit with his son Jaylen.

“As I neared the fitting room the staff from the nearby service desk had gathered. (A staff member) told me that there was a boy unaccompanied in the change rooms that didn’t have anything to try on so she called security,” he wrote.

“I suggested that she was racially profiling as the only thing she would have noticed was a young Aboriginal man, in her mind, appearing to be in the wrong place.”

A spokesman for Myer said they had apologised to the family: “Myer has looked into this matter, which came about due to a misunderstanding between team members when the customer entered the change rooms without any clothing items. There were no other factors involved.”

benedict.brook@news.com.au

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Original URL: https://www.news.com.au/finance/business/retail/myer-executive-admits-poor-customer-service-is-rife-at-department-store/news-story/3184f77d51bfeb300fa5d14b3ba4f4e5