|Type||Public (ASX: MYR)|
|Founded||1900 in Bendigo, Victoria, Australia|
|Headquarters||Melbourne, Victoria, Australia|
|Key people||Sidney Myer, Founder
Paul McClintock, Chairman
Bernie Brookes, CEO
|Products||Womenswear, Menswear, Miss Shop (Youth), Childrenswear, Intimate Apparel, Beauty, Fragrance and Cosmetics, Homewares, Electrical Goods, Toys, Footwear, Handbags and Accessories and General Merchandise|
|Revenue||Total sales of over $3.1 billion in FY2012|
Myer (stylised MYER) is an Australian chain of up-market department stores. It is Australia's largest department store chain, retailing a broad range of merchandise including women's, men's and children's clothing, footwear and accessories; cosmetics and fragrance; homewares; electrical; furniture and bedding; toys; books and stationery; food and confectionery; and travel goods.
- 1 History
- 2 Stores and services
- 3 See also
- 4 References
- 5 External links
The Myer retail group was started by Sidney Myer, who migrated from Russia to Melbourne in 1899 with very little money and little knowledge of English to join his elder brother, Elcon Myer (1875–1938), who had left Russia two years earlier. They opened the first Myer store in Bendigo, Victoria in 1900. After prospering, the second store opened in 1908.
In 1911, Myer purchased the business of Wright and Neil, Drapers, in Bourke Street, Melbourne, near the General Post Office, and a new building was completed and opened in 1914. From this base in Melbourne, Myer built Australia's largest chain of department stores, and the only chain with stores in all Australian states.
In 1918, the Doveton woollen mills at Ballarat were purchased, and in 1921 a new building fronting Post Office Place was added at Melbourne and in the following years Myer purchased adjoining properties, eventually building a store known as the Myer Emporium.1 Myer expanded to Lonsdale Street in the 1920s.2
The Myer Emporium grew with the purchase of the old established businesses of Robertson & Moffat and Stephens & Sons. In 1925, Myer Emporium Ltd was listed on the Melbourne Stock Exchange and the new building on the Lonsdale Street frontage was begun. In Adelaide, in 1925, the company Myer SA Stores Ltd acquired a controlling interest in Marshall's department store and its shares continued to be listed on the Adelaide Stock Exchange until Myer Emporium Ltd made a successful takeover bid in 1966. A separate building in Queensberry Street, Melbourne, was put up in 1928, and the Collins Street businesses of T. Webb and Sons, china importers, and W. H. Rocke and Company, house furnishers, were bought and transferred to the Bourke-street building. By 1934, the public company had a paid-up capital of nearly £2,500,000. The company was then employing 5300 people with medical and nursing aid for the staff, and rest homes for them at the seaside and in the Dandenong Ranges.
On the death of Sidney Myer in 1934, leadership of the company fell to Elcon Myer, and on the death of Elcon in 1938, leadership went to their nephew Norman Myer. Norman Myer led the company until his death in 1956.3
Myer grew by developing its own stores (becoming one of Australia's major property owners and developers in the process) and acquiring other department stores, including Adelaide's Marshall's, Western Australia's Boans in 1984, Queensland's Barry and Roberts and in New South Wales they acquired Western Stores, Farmers & Co in 1961 and Grace Brothers in 1983.
In 1968, Myer acquired Geelong's Lindsay's stores,4 renaming the business Target following the purchase of name and logo from US Target Corporation and positioning it as a discount department store chain.5
In 1984, Myer acquired Boans Ltd,7 the dominant Western Australian department store chain and embarked on a major redevelopment of its Perth City Store.
In 1985 the Myer Emporium (and Target, its discount department store) merged with GJ Coles & Coy forming Coles Myer Limited, then Australia's largest retailer.8 Myer remained a distinct entity within the new corporate structure until it was sold in 2006.
At the post-Christmas sales in 1992, the glass doors to the Grace Bros Sydney City store were shattered by a stampede of shoppers.9
In 2000, Coles Myer CEO Dennis Eck, faced with lower sales and profits from Myer and Grace Bros. stores took the department stores down market, reducing service levels, increasing stock volumes on the selling floor and introducing product to appeal to younger consumers. In doing so, he ended up replicating the approach of another of Coles Myer's chains, Target. The resulting effect included reduced customer visits and reduced units sold per transaction. In 2001, Coles Myer set about to reposition the store to appeal to customers lost in the down market experiment.10
In 2003, one of the key changes made by the recently appointed Managing Director, Dawn Robertson, was to classify each Myer Grace Bros. store using a grid system referencing the socio-economic status of the area, its turnover and growth potential. Larger city-centre stores would rank at the top of the grid and smaller regional stores would rank at the bottom of the grid. The grid would affect the merchandise allocated to each store, rather than selling the same range of product in downtown Melbourne as in regional Queensland.11
On 13 February 2004, Grace Bros. stores were rebranded as Myer.12
In April 2004, Myer re-opened its Bondi Junction, New South Wales, store which replaced a former Grace Bros. store closed in April 2002 to make way for the redevelopment of Westfield Bondi Junction. It was the first Myer store to open in several years and incorporated new features such as white glossy floor tiles, extensive use of glass, and greater use of mannequins.
Under managing director Dawn Robertson, Myer began to target the Sydney market more strongly, to challenge the position of chief rival David Jones particularly in ladies fashion. In February 2004, Myer held its Sydney fashion parade the day before David Jones. On 9 August 2004, Myer staged a fashion parade open-air in Martin Place, gaining widespread attention, and again it was held the day before David Jones' show.13
On 17 August 2005, Coles announced that within 12 months, it would decide to demerge, divest or retain Myer. Thirteen expressions of interest were made for all or part of Myer.14
On 13 March 2006, Coles Myer announced it would sell Myer to a consortium controlled by US private equity group Newbridge Capital, part of the Texas Pacific Group. The consortium also included the Myer family, who held a 5% stake. The new owners, who also secured the freehold on the flagship Bourke Street store, indicated that they would not radically change the business, at least in the short term, and had no plans to redevelop the Bourke Street site as this would impact too heavily on profitability during the construction period. Texas Pacific also have interests in UK department store Debenhams and high-end US retailer Neiman Marcus. This sale was completed for A$1.4 bn on 2 June 2006.15
After being divested from Coles Myer (later Coles Group, then purchased by Wesfarmers), new owners Newbridge Capital and the Myer family appointed chairman Bill Wavish and chief executive Bernie Brookes, both formerly of Woolworths.
Beginning July 2006, Myer held a "History Making Clearance" to clear out excess stock deemed either unprofitable or unpopular, and reduced inventories from $1.5 billion to $750 million, and all store-specific warehouses were closed.16
Myer withdrew from the Coles Group part-owned flybuys rewards program on 1 February 2007.
In March 2007, Myer announced first half earnings before interest and tax (EBIT) of $123 million, an increase of 84% on the previous year. This represents a profit margin of 6.8%, compared with 3.9% in the previous corresponding period. According to chairman Bill Wavish, all Myer stores were now profitable, and all stores were more profitable than in the previous year.18 Myer acquired four Harris Scarfe stores (including regaining a store it divested to Harris Scarfe in 1998) and took a minority shareholding in Harris Scarfe.
The Mymerch system, developed with IBM and Oracle, cost $99 million and was implemented early April 2007. Among other functions, Mymerch will beef up Myer's ability to carry out statistical analysis of customer habits giving it greater capacity to forecast sales trends and target promotions.19
Myer's profit turnaround was tempered in April 2007 by the loss of key staff. Bob Boutin, apparel director, Mark Bingemann, women's wear business manager and Jasmine Bingemann, footwear and accessories manager all resigned within a short period.20 This followed reports of management dissatisfaction over the direction of the fashion business signified by the defection of designers such as Alex Perry and Tigerlily to David Jones.21
In June 2007, a consortium comprising the Myer family, Colonial First State and GIC Real Estate (Singapore) announced it would be purchasing Myer's Melbourne CBD store. The Bourke Street part of the store was planned to be redeveloped by 2009, with Myer taking a 60-year lease,22 but the development was not completed until March 2011.23 The Lonsdale Street part of the store closed in 2009.
In September 2009, following rumours the previous month,24 Myer indicated it would float the business at an indicative share price range of $3.90 to $4.90 when it listed on 2 November, giving it a market capitalisation between $2.3 billion and $2.8 billion.25 The final issue price was $4.10,26 but by August 2011 the stock had slumped to as low as $2.09.27
The MYER one program was introduced in August 2004 after Coles Myer discontinued its shareholder discount card the previous month.
It initially credited 1-point per $1 spent up to $2500 per annum; 1.5 points per $1 spent from $2500 to $5000 per annum; and 2 points per $1 spent for $5000+ per annum. Each 1,250 points accrued would earn the customer a $25 gift card, provided $1,500 was spent each year. With the relaunch of the Myer store card in November 2006, this changed to awards 2 points per $1 spent, regardless of annual spend, with 2,000 points required to receive a $20 gift card. Members who pay with a Myer store card receive an additional point per dollar spent. Customers also earn 1-point for every $1 spent outside of Myer when using the Myer Visa card. MYER one members are sent a quarterly update, in addition to special member offers, including discounts, a free copy of the "Myer Emporium" magazine, product samples and "gift with purchase" offers.
Myer revamped its MYER one program by introducing a graduated rewards system with four levels including Standard, Silver, Gold and Platinum . Each reward level is dependent on customer spend and confers exclusive benefits. The Platinum membership is by invitation only and is for Myer's highest spending customers and was added to the program in May 2013.
In September 2010, Myer stated there were 3.7 million members and five million cards in circulation. Of these, over 20,000 had Gold status, spending over $7,500 per annum. Sales attributed to members accounted for 68% of total Myer sales. Gift cards valued at $51 million had been provided to members as rewards in the previous year.28
Myer originally had a store card managed by Australian Retail Financial Network (ARFN), sold in 1995 to GE Money.29 This was superseded by a Coles Myer Card which could be used at all Coles Myer stores. This was augmented by the Coles Myer Source MasterCard, also managed by GE Money.
Following its sale, Myer relaunched the Myer card in October 2006 in conjunction with GE Money. According to GE Money, 125,000 accounts had been opened by August 2007.30
In November 2007, Myer launched a Visa credit card, also in conjunction with GE Money. Myer stated it was prepared to wear losses from the card for two years and that its objective was to drive increased loyalty from the card (which links with the MYER One card) rather than being profitable in its own right. It expected to sign 100,000 customers to the Visa card by November 2008.31 Myer reported it had signed 15,000 customers to its Visa card in the first five weeks from launch, half of whom were converts from the existing store card.32
In 2007, the Coles Myer Card and Coles Myer Source MasterCard were renamed Coles Group Card and Coles Group Source MasterCard respectively and as such were no longer affiliated with Myer.
Myer has stores in all Australian states and the Australian Capital Territory. Stores are located in all the capital cities (except Darwin) and their suburbs, and selected regional towns and cities.
In 2006, Myer announced the opening of new stores, starting with four former Harris Scarfe stores (two in South Australia and two in Victoria).16 Further to this, in 2008 in Sydney, Myer opened two new stores in Sydney at Westfield Eastgardens and Centro Bankstown replacing the former David Jones Limited stores, while David Jones replaced the Myer store in Westfield Burwood, and stated it would open a store in the Stockland Townsville centre in early 2009. This project was delayed due to problems with the acquisition of land; however, in late October 2012 a Myer store opened in that centre.34
In 2007 Chairman Bill Wavish stated Myer was willing to build new stores if necessary, and that new locations could be in any city or town with a population over 40,000 people.35
On 22 September 2007, Myer's Liverpool Street building in Hobart was destroyed by a fire that is believed to have started in the cosmetic section. Estimates placed the damage costs at $50 million for the building alone with many millions more for all the stock which was destroyed. The building including its historic façade was subsequently demolished. The adjacent Murray Street building suffered substantial smoke and water damage. Within a day of the fire, Myer issued a statement saying it would be rebuilding in Hobart. They reopened the Murray Street section of their store on 16 November – 44 days after the fire.3637 Myer also stated that they will build a new store that may take up to 3 years to build and will add 2,000 m² of space. Whilst that development is taking place in the damaged part of the store, Myer will be using a site in MacQuarie Street for departments unable to fit into the Murray Street building, in a Harvey Norman style "home store". As of November 2013, no development has started on the new store. Much public opinion and debate has caused many ideas, including returning the site to its external glory to fit in with the tone and environment of Hobart's historic CBD.citation needed
In April 2008, Myer announced that it would open 3 new stores in Queensland. The first two stores were planned to open in 2010 at Westfield Garden City – Upper Mount Gravatt, Robina Town Centre with the third store planned to open in Mackay in 2011. Myer also announced that it would open a store at Stockland Green Hills – East Maitland in 2011 when the redevelopment was completed, later delayed until 2013.39
In September 2009, it was announced that three more stores would open at Tuggerah on the New South Wales Central Coast, Woden in Canberra and Robina on the Gold Coast, Queensland. In total, at the time of launching its prospectus, Myer stated it had signed conditional lease agreements for 12 locations to open progressively from 2010 to 201339 with a plan to reach 80 stores by 2014.42
Myer operated its own direct mail order company, Myer Direct, from 1989 until its sale to Ezibuy 43 in January 2002.
In October 2007, Myer launched an online gift store, including electronic goods, perfumes, miss shop clothing and gift cards.44
In 2011, Myer launched an online shopping site called myfind.com (which is now closed) based in Hong Kong for people in Australia. 45
Myer will continue to operate Myer.com.au based in Melbourne where sales tax applies.
|This section needs additional citations for verification. (January 2011)|
- Womenswear is usually prominently featured within each store and will often be the largest department. Myer carries various mass market labels in womenswear, with a selection of designer clothing available only in city stores.citation needed Petite (short) and plus sized clothing is kept in separate areas to regular sized clothing.citation needed There are a large number of concession stores that sell women's clothing.
- Cosmetics, Fragrances & Personal Care has a higher expenditure on labour, as most counters require their own staff and is usually positioned near the main store entrance.
- Menswear is usually located on a separate floor to womenswear, the labels carried lie much more in the mid range. Unlike womenswear, the department has areas devoted to accessories, business shirts, suits, shoes and underwear. Designer and concession brands are available in selected stores, as is formal hire.citation needed
- Fashion Accessories houses women's handbags, scarves, hats, belts, purses/wallets, jewellery, hosiery, socks; women's & men's watches and sunglasses.
- Intimate Apparel section sells women's underwear, lingerie, sleepwear and gowns. Some staff are trained in fitting bras, and occasionally some underwear brands will have a fitter in store to give advice.citation needed
- Electrical consists of two sections: Small Appliances and Home Entertainment. The Small Appliances departments carries kitchen appliances, laundry appliances, electrical personal care and many other household electrical goods. The Home Entertainment department carries personal computers, TVs, digital cameras and other audio visual equipment.
- Homewares includes cookware, kitchenware, tabletop (dinnerware, glassware & cutlery), manchester and napery. Usually extremely busy during salescitation needed, this department also contains the Gift Registry.
- Miss Shop and Men's Youth departments are targeted for shoppers ages from mid-teens to early thirties.citation needed Different music to the rest of the store is played within these areas.citation needed There are also music videos showing either in fitting rooms or on the shop floor. Merchandising principles are relaxed from what is required in womenswear and menswear;citation needed and abstract fixtures and visual displays are often used.citation needed For example, items can be hung sideways on hangers, mannequins are sometimes dressed "messily" or clothes may be stacked on chairs and milk crates.citation needed
At the Melbourne City store, both these departments are located in "The Basement" and is much larger than in other stores, at almost 6,000m2.46 The staff are dressed casually to reflect the youth target market. There are also a small number of concession stores within this area. The concept has been expanded to selected stores – such as Warringah Mall, Chatswood, Parramatta, Sydney City, Perth City and in the new Murray Street store in Hobart, but generally on a smaller scale.
- "Myer’s place in history". Bendigo Advertiser. 20 August 2010. Retrieved 27 January 2011.
- "Myer's Food Hall's bitter end". Herald-Sun, Melbourne. 17 August 2007. Retrieved 27 January 2011.
- "Myer, Sir Norman (1897–1956)". Australian Dictionary of Biography. Retrieved 27 January 2011.
- "Finance and Business". The Age. 26 October 1968.
- "Myer's enter discount war". The Age, Melbourne. 25 November 1969.
- "Myer wins Grace Bros". The Age, Melbourne. 16 June 1983.
- "Myer offer gets blessing from Boans". Sydney Morning Herald. 15 February 1984.
- "Myer family clears way for Coles $1.12bn bid". Sydney Morning Herald. 7 August 1985.
- "Australian Shoppers Put Hurt on Recession". Chicago Sun-Times. 30 December 1992. Retrieved 29 June 2008.
- "Eck's Challenge at Coles Myer". MMR. 16 April 2001. Retrieved 28 June 2008.dead link
- "The Dawn of a new era". Melbourne: The Age. 20 February 2003. Retrieved 28 June 2008.
- "Name falls from Grace as Myer becomes my store". Sydney Morning Herald. 13 February 2004. Retrieved 1 August 2007.
- "'Store wars' launch summer fashion". Sydney Morning Herald. 9 August 2004. Retrieved 3 August 2007.
- "$800m Myer sale season tipped". The Age, Melbourne. 17 August 2005. Retrieved 3 August 2007.
- "Myer sale finalised". ABC News online. 2 June 2006. Retrieved 3 August 2007.
- "Brookes on Myer renovation". Inside Business. 19 November 2006. Retrieved 3 August 2007.
- "Golden girls battle for city's heart and cash". The Sun Herald. 5 August 2007. Retrieved 5 August 2007.
- Gluyas, Richard (27 March 2007). "Myer's makeover reaps $1bn". The Australian. Retrieved 3 August 2007.
- "Australian IT – Myer weaned from Coles IT". The Australian. 27 March 2007. Retrieved 3 August 2007.dead link
- "Myer loses top layer of fashion expertise". Brisbane Times. 29 April 2007. Retrieved 3 August 2007.
- Flirting, After; Fashion, High (2 August 2007). "Dressing down at Myer". The Australian. Retrieved 3 August 2007.
- Butler, Ben (22 June 2007). "Family ties bind at Myer". Herald Sun, Melbourne. Retrieved 3 August 2007.
- "Myer Bourke Street reopening". Daily Telegraph. 31 March 2011. Retrieved 24 August 2011.
- "TPG eyes IPO for Australia's Myer department store group". The-Financial-Times, Australia. 5 August 2009. Retrieved 7 August 2009.
- Greenblat, Eli (6 October 2009). "Demand for Myer stock tops $2b". Melbourne: Sydney Morning Herald. Retrieved 6 October 2009.
- Gluyas, Richard (24 August 2011). "Tax Office wins legal backing to pursue TPG over Myer float millions". The Australian. Retrieved 24 August 2011.
- "ASX:MYR". Google Finance. Retrieved 24 August 2011.
- "ASX and media release – Myer Full Year Results for 2010". Myer. 16 September 2010. Retrieved 16 September 2010.
- Kohler, Alan (25 October 2003). "General Electric gets the sparks flying". Melbourne: The Age. Retrieved 6 October 2009.
- "GE grows with Myer Black". The Sheet. 4 October 2007. Archived from the original on 5 October 2007. Retrieved 5 October 2007.
- Myer uses Visa card to generate loyalty. Australian Financial Review. 12 November 2007. p. 16
- Retailers take on the banks…again. Australian Financial Review. 30 January 2008. pp. 1, 61
- Dunlevy, Maurice (29 March 2007). "Myer into building mode with 17 new stores planned". The Australian.
- "Historic Hobart Myer destroyed by fire". Melbourne Herald Sun. 22 September 2007. Retrieved 22 September 2007.
- "Myer handed back part of store after fire". The Age, Melbourne. 27 September 2007. Retrieved 28 September 2007.
- "Myer to open new Sydney store". News.com.au. 13 November 2007. Retrieved 14 November 2007.dead link
- "Myer prospectus". ASX. Retrieved 28 September 2009.
- "Shopping giant spreads wings". Sydney Morning Herald.
- "Myer's Dubai move put on hold". arabianbusiness.com. 24 March 2009. Retrieved 6 October 2009.
- Greenblat, Eli (28 September 2009). "Prospectus out: Myer prices shares". Sydney Morning Herald. Retrieved 6 October 2009.
- "Myer Gifts Online". Myer. Retrieved 6 October 2009.
- Retail Environment Design: Myer Basement