Myer to launch an app to solve shoppers’ most annoying problem

IT’S ONE of the most frustrating parts of shopping in a department store, and Myer reckons it has a solution. But will it save the struggling retailer?

Myer. Logo. Signage. Sign.

IT’S ONE of the most frustrating parts of shopping in a department store.

You’re looking for a pair of shoes, but the ones on display are not in your size and there’s not a sales assistant in sight. But Myer has a solution.

Soon, you’ll be able to summon your desired footwear with a simple tap of your smartphone, thanks to the retailer’s latest tech advancement.

Chief executive Richard Umbers unveiled the innovation while speaking to the Myer’s first half financial year results this morning, as he sought to reassure investors the retailer was on track despite a profit slide of four per cent.

Myer is amid what Mr Umbers called “the biggest brand overhaul in corporate memory”, aimed at turning its fortunes around in a tough climate.

Central to the plan is a focus on priority customers like the fashion-obsessed segment Myer has designated the nickname ‘Eva’.

“New Myer is a reframe of the department store,” Mr Umbers said.

“It’s no longer a store of many departments ... We’re building a department of many stories, each story told through the brands that reflect the lifestyle of Eva.

“And in practical terms that means being able to buy the complete outfit — dress, shoes, handbag and accessories all in one location.”

Liz Cambage has a new shoe brand named after her for women with larger than average foot sizes. Liz in Myers Melbourne store. Picture: Jason Edwards

Shoes have been singled out for a technological boost with an app that’s “ready for rollout” after a successful trial run.

“The app alerts a runner from the backroom to bring the correct shoe size to the shop floor, allowing sales staff to stay engaged with the customer,” Mr Umbers said.

It’s all part of an omnichannel strategy that aims to cement Myer’s place in the digital age while enticing shoppers into physical stores.

Online sales increased by 70 per cent in the six months to January, with a quarter of them made on in-store iPads, featuring digital catalogues that click through to the online store.

Myer does not release online-only sales figures, as stock is counted as having been sold from the store it was dispatched from.

“From our perspective, we are pleased with it, but it does reflect the emphasis that’s been placed on it,” Mr Umbers said in response to questions from investment bankers on this morning’s conference call.

Chief Financial Officer Grant Devonport added that Myer’s online sales were in “a profitable position”.

Its click-and-collect service, which allows customers to order online and pick them up in store, was “growing very strongly”, Mr Umbers said.

“Our digital strategy capitalises on Myer’s real assets — our brand, our physical presence, our people, blended with digital capability,” he said.

But what about those ghostly sales assistants?

At Myer’s flagship Sydney and Melbourne stores, at least, you should have a decent chance of finding one.

They’ve installed a concierge at the top of each escalator — many with multilingual skills — and improved rosters, Mr Umbers said, adding 84,000 extra sales staff hours over the six months.

Topshop's Hilton Seskin with MYERs Daniel Bracken outside the Topshop in the Emporium centre on Lonsdale St in Melbourne.

THE HALO EFFECT

Having already shed hundreds of underperforming fashion brands, Myer will bring men’s label Industrie and womenswear brand Veronika Maine into its stores, joining high performers Seed, Nine West, French Connection and Mimco.

Myer has rolled out the first six of 20 planned concessions of the trendy British high street brand Topshop Topman across its flagship and premium stores.

“As a stand-alone brand installation, this is one of our best performers, well aligned with our primary customer segment,” Mr Umbers said.

“But there’s an additional benefit. What we’ve realised is that you create a halo that delivers a whole of store sales and traffic uplift.”

He gave the example of Myer’s Bondi Junction store, where Topshop Topman had helped turn around sales, which were tracking at more than six per cent higher than last year, after a four per cent drop on the previous year.

“In each category you need an offer that has instant credibility and to do that you need a headline brand to anchor the range off,” Mr Umbers said.

“And the exciting thing about Topshop Topman is that it actually has reach across all our customer segments, all our priority customers.”

Sisters Sofia (L) and Stella Hutchens are excited about their personalised Nutella jars at their Gymea home. Picture: Toby Zerna

CHRISTMAS CHEER

If there’s one product that symbolises what New Myer is all about, it’s those personalised jars of Nutella that made an appearance over Christmas.

Stocked at Myer ‘Giftoriums’ during the holiday period, the Nutella jars took a well known brand and gave it an experiential twist as part of the push to reaquaint customers with the joy of Christmas shopping.

The jars, embossed with individually printed name tags, sold like hot cakes with 420,000 jars heading out the door.

NO NEW STORES

After announcing last week that Brisbane’s Brookside store would be closed, Mr Umbers confirmed that planned store openings at Coomera and Tuggerah would not go ahead.

There was no confirmation of a potential new store in Darwin, which Mr Devonport said was still under negotiation.

Instead of opening new stores, Myer will focus on making its business sustainable by “creating an offer that resonates with a particular customer cohort”, Mr Umbers said.

The company is set to ramp up spending, including a major refurbishment of its Warringah Mall store.

Myer has revised its full year profit forecast from $64-$72 million to $66-$72 million, based on an expectation of stable consumer sentiment.

“After six months of effort, the key indicators are moving in the right direction — but at the same time, we recognise how far we’ve got to go,” Mr Umbers said.

“We’re encouraged by the progress we’ve made so far in this transition year, but we are not yet satisfied. And the job is still ahead of us.”

MYER RESULTS AT A GLANCE:

* Half year profit down 4 per cent to $59.7 million

* Revenue up 1.8 per cent to $1.79 billion

* Fully franked interim dividend of 2.0 cents a share, down from 7.0 cents

Source: AAP

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