$625 $m
Department stores are rapidly losing relevance as both Myer and David Jones are starting to blur in the eyes of Australian shoppers. Myer’s digital execution and exclusive brands strategy gives the brand a slightly stronger position, bolstered by moves such as the recently launched Click and Collect service. It’s a step in the right direction, but like many Australian brands, digital revenues aren’t replacing declining offline revenues at a fast enough rate. Offline, the single strongest complaint is still customer service and the in-store experience. 2013 is promising some significant strategic changes. Successful execution will be essential as Myer fine tunes strategic priorities including the brand’s retail footprint, service levels and MyerONE awards program. Myer’s new chairman may think beefing up e-commerce is a significant risk, but we would argue that the reported AU $30 million (USD $31 million) investment is an absolute necessity.