Myer

From Wikifashion

Myer is Australia's largest chain of department stores, 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.

History

Early history

Sidney Myer and his brother opened the first Myer store in Bendigo, Victoria in 1900. After prospering, the second store opened in 1908. In 1911, Sidney Myer purchased a drapery store on Bourke Street, Melbourne and in the following years purchased adjoining properties, eventually building a store known as the Myer Emporium.

Myer expanded to Lonsdale Street in the 1920s.

From its base in Melbourne, Myer built Australia's largest chain of department stores, and the only chain with stores in all Australian states.

Myer's growth involved developing its own stores (in the process becoming one of Australia's major property developers and owners) as well as 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 Farmers & Co in 1961 and Grace Brothers in 1983. In Adelaide, the company Myer SA Stores Ltd began after acquiring a shareholding in Marshall's department store in 1925 and its shares continued to be listed on the Adelaide Stock Exchange until Myer Emporium Ltd made a successful takeover bid in 1966.

Target, Grace Bros and merger with GJ Coles

In 1968, Myer acquired Geelong's Lindsay's stores,^[1] renaming the business Target following the purchase of name and logo from US Target Corporation and positioning it as a discount department store chain.^[2]

In 1983, Grace Bros. bought Myer NSW, and then in July of that year Myer acquired Grace Bros. Holdings Ltd.^[3] The Myer store on Market and Pitt Sts in Sydney became the main Grace Bros. store.

In 1984, Myer acquired Boans Ltd,^[4] 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.^[5] 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.^[6]

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.^[7]

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.^[8]

On February 13, 2004, Grace Bros. stores were rebranded as Myer.^[9]

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 August 9, 2004, Myer staged a fashion parade open-air in Martin Place, gaining widespread attention, and again was held the day before David Jones' show.^[10]

Myer leaves Coles Myer

On August 17, 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.^[11]

On March 13, 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 $A1.4 bn on June 2, 2006.^[12]

Under new owners

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.

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.^[13]

Former Miss Universe Jennifer Hawkins began appearing in campaigns for Myer in 2006 and in January 2007 signed a $4 million deal to be the "face" of Myer for four years.^[14]

Stores and services

"MYER one" rewards program

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 three levels including MYER one, MYER one Silver and MYER one Gold. Each reward level is dependent on customer spend and confers exclusive benefits. By September 2009, there were 3.1 million members. Of these, 487,000 had acquired Silver status (annual spend $1,500 - $7,500), 21,500 had Gold status ($7,500 - $13,500) and 200 were members of the "CEO's club", spending more than $13,500 pa.^[15][16] From 2006 to 2009, the share of total turnover through MYER one cards had risen from 43%^[17] to 63%.^[16]

Store Locations

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).^[13] 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 Limited replaced the Myer store in Westfield Burwood, and stated it would open a store in the Stockland Townsville centre in early 2009 which didn't happen due to issues with buying of tenants for the land.^{[citation needed]}

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.^[18]

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.^[19][20]. 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".

In November 2007, Myer announced it would open a store in the redeveloped Top Ryde shopping centre in northern Sydney in 2010. There was previously a Grace Bros store at this centre from the 1960s until closure in early 1988.^[21]

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.^[15]

In July 2008, Myer stated it planned to expand into the Middle East and open its first overseas store in Dubai,^[22] but by March 2009 had put such plans on hold.^[23]

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 2013.^[15] with a plan to reach 80 stores by 2014.^[24]

Online Shopping

In October 2007, Myer launched an online gift store, including electronic goods, perfumes, miss shop clothing and gift cards.^[25]

Departments

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. Petite (short) and plus sized clothing is kept in separate areas to regular sized clothing. 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. Usually positioned at the main entrance to the store, most products are now on open-sell.

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. Menswear is usually located on the bottom floor.^{[citation needed]}

Fashion Accessories houses women's handbags, scarves, hats, belts, purses/wallets, jewellery, hosiery, socks; women's & men's watches and sunglasses.

The range of men's and ladies' shoes carried varies by store. Designer shoe ranges are only available in limited stores.

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.

Homewares includes cookware, kitchenware, tabletop (dinnerware, glassware & cutlery), manchester and napery. Usually extremely busy during sales, this department also contains the Gift Registry. Homewares are usually placed on the top floor.^{[citation needed]}

Miss Shop and Men's Youth aimed at those in mid to late teens, Miss Shop tends to attract late teens to mid twenties, even into thirties. Different music to the rest of the store is played within these areas. 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; and abstract fixtures and visual displays are often used. For example, items can be hung sideways on hangers, mannequins are sometimes dressed "messily" or clothes may be stacked on chairs and milk crates.

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.^[26] 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.

Childrenswear is separated into babywear, boyswear and girlswear, it caters up to ages 14–16, depending to the child's size. Children's shoes are also sold.

Electrical is being given more impetus than by previous management. In July 2004, Brazin Limited, which operates Virgin Megastores Australia, entered into an agreement with Myer to create Virgin entertainment locations in Myer stores. Under the agreement, Myer stock was acquired and Myer pre-recorded audio and video departments were re-branded to Virgin. It is claimed that Virgin has not renewed its agreement with Myer and that from from August 2010, Virgin entertainment locations will cease to operate within Myer stores.^{[citation needed]}

Myer operated its own direct mail order company, Myer Direct, from 1989 until its sale to Ezibuy in January 2002.

Labels

See also

• David Jones Limited
• Grace Bros.
• Harris Scarfe

References

External links

• Myer home page
• MYER one home page

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