John Durie’s CEO survey 2014: Bernie Brookes, Myer

“I’m excited about the recent launch of our initiatives such as Christmas Giftorium in all stores.”

CUP Colour

1: Has the corporate outlook improved and if so what are your investment plans?

I’m excited about the recent launch of our initiatives such as Christmas Giftorium in all stores, and our new branding and advertising campaign which will help drive sales over the important Christmas and stocktake sale period. We have invested significantly this year in new stores, refurbishments, online and our exclusive brands. We will start to see the benefits of these investments in FY2015, and we will continue to invest in Omni-Channel, Myer Exclusive Brands and customer service innovation over the course of the year.

2: What is the disruptive technology you fear most, how will you beat it and name the three other biggest challenges and opportunities?

Rather than fear technology, we are embracing it through our Omni-Channel strategy which complements our physical stores. Technology has enabled us to introduce iPads with a customised app in all our stores so customers can purchase from an extended range of products that are not normally available at their local store. Click and collect delivery is available at all stores so customers can purchase products online and collect them from their nominated store. Once Christmas parcel delivery deadlines are met, click and collect means customers can still shop online and receive their gifts in time for Christmas. Mobile commerce continues to grow in popularity and is an important way to enhance customer engagement. We have improved the mobile functionality for our online store and our Myer One app enables members to receive and redeem rewards cards via their mobile device.

3: What are your shareholders’ key concerns?

Our shareholders want to know that we have a solid strategy in place to drive returns and a strong leadership team to guide the business. I have great confidence in the team I am leading, and the arrival of three new senior executives has brought additional retail experience, new ideas, and enthusiasm. We continue to evolve our strategy and invest in the business to lay strong foundations for future growth.

4: What are the top three issues facing the nation and how should they be resolved?

From a retail perspective, subdued consumer sentiment, inconsistent laws, and the depreciation of the dollar are key issues. We believe that governments need to work harder to create the right conditions for business to thrive; that includes providing clear direction on budget measures and consistent trading regulations across the country.

5: What should be top of the tax reform agenda?

We would like to see the federal government remove the unfair GST exemption for overseas companies selling goods into Australia. Myer collected over $300m in GST from our customers in the last financial year, and we pay income tax of over $49m and payroll tax of over $20m. Offshore retailers pay none of this and it is important that this loophole is closed. The retail industry has argued strongly that the GST exemption issue must be on the agendas of federal and state governments, but action has still not been taken.