Myer chairman Paul McClintock’s parting shots

Outgoing Myer chairman Paul McClintock. Pic: David Geraghty

Outgoing Myer chair Paul McClintock has blasted the lack of urgency around health reform saying “there is an acceptance that structural change is difficult when we need change”.

McClintock who is also chair of I-MED Radiology and CEDA, said “we need better co-ordination between the federal and state governments and a realisation that health accounts for 10 per cent of GDP and needs to be made more affordable.

He was speaking to The Australian after confirmation he will hand over his chairmanship of Myer to prominent corporate director Garry Hounsell.

Hounsell will join the Myer board shortly and is slated to take the top job from around March next year, when the first half numbers are in.

McClintock strongly defended the performance of Myer chief Richard Umbers, saying he was undertaking disciplined restructuring of the retailer.

“This is an extraordinarily challenged time for department stores and we have to rethink the model,” he said.

The keys McClintock said, were to have a few big trophy stores where everyone wanted to go, destination and a strong online offering.

He cited Britain’s Harrods as one of the stores doing well and noted the likes of America’s Nordstrom and the UK’s John Lewis were also finding things tougher.

Limited numbers of venues in malls where people wanted to go was the answer, he said.

The challenge, he said, had come from global fashion players with a strong online offering and bricks and mortar stores.

“A strong online sales presence is the only future for department stores,” he said.

Asked about the local economy, McClintock said it was “all right.”

“Current growth is being propped up by public sector spending which was not sustainable,” he said.

McClintock said “political leadership across the board was weak”.

A former staffer for John Howard when he was prime minister, McClintock said he was “still concerned about the significant federal deficit”.

“We need to find other growth engines where we have competitive advantage,” he added.

“We have to get used to the slow growth which dampens wage growth and spending.”