Myer to cut permanent staff for casuals

MYER is in a bad patch, and it’s about to take some big risks in a bid to revive its fortunes. The first step: taking an axe to 100 different brands.

22 Sept 2005 Myer store at Carlingford which may be closed. PicTracee/Lea retail stores shop shops logo logos shopper

MYER is cutting around 100 brands to make way for new labels.

Fairfax Media reports the women’s, children’s, footwear and homewares brands have been dropped ahead of a Spring Clean sale on Wednesday.

The move comes after rival David Jones culled around 180 of its 2400 brands.

Yesterday, Myer confirmed plans to cut permanent staff members in favour of more casuals.

Myer says this will give them the flexibility to increase staff hours during the busy seasons and to decrease them during the quiet times.

The move appears to be in stark contrast to David Jones which is increasing the number of its full time store employees. Voluntary redundancies will be offered at 42 of Myer’s 67 stores as part of the retailer’s plan to turn around flagging sales.

“We are changing the mix of permanent and casual team members to achieve greater flexibility, so we can align our workforce with customer demand and adapt to changes in store traffic flows,” a Myer spokesman said.

Morningstar analyst Farina Parsons said striking the right balance between permanent and casual workers was particularly crucial for department stores given their size.

“To get that rostering right is going to be very essential,” she said.

“It would be dangerous to get rid of too many staff because shedding too many would affect customer service and they can’t afford to do that in such a competitive environment.” Myer has been struggling with declining sales and is in the middle of a major overhaul to turn around the business.

The retailer closed its department store at Sydney’s Top Ryde City shopping centre on Saturday and will close three speciality stores in Melbourne next month.

Shares in Myer closed one cent higher, or 0.84 per cent, at $1.195 on Tuesday.

The retailer is yet to reveal which labels will be removed from stores.