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Transformation of Australian Retail Business

December 5, 2016
Posted by adjuno
Richard Umbers speaking about transformation of the Myer Australia business

Richard Umbers speaking about transformation of the Myer Australia business

On 30th Nov, Adjuno attended a breakfast briefing event Fit for Business – Australian Retail transformation”, organised by Retail Doctor in Melbourne, Australia. This event was designed to help businesses learn about opportunities to transform their retail and be fit for business in a digital / omni-channel age.

One of my key take-away messages was, “profitable growth is no longer available through footprint expansion: omni channel is a given. The question is how to make on line sales synergistic with a reformatted bricks and mortar footprint.”

Brian Walker, CEO of Retail Doctor Group made an opening introduction and spoke about the Retail Doctors approach to facilitating growth and brand development, and that bricks and mortar stores will remain a key part of retail.

The other speaker Anya Anderson of Redseed presented a series of statistics showing how improved customer responsiveness in staff drove brand and store loyalty and greater revenue.

Richard Umbers, (MD of Myer) was the highlight of the event, when he overviewed the significant turnaround in the Myer Transformation. The key points are summarized as below –

  • No turnaround story can be superficial, and this is not exception – this absolutely must be root and branch and a rebirth of the Myer name.
  • Digitization is pivotal – developing your omni-channel strategy so that it drive customers to the stores is critical piece of the strategy.
  • Customers are increasingly brand followers. Thus Brand clustering in store – rather than departmental groupings – drives the new store layout. The Sydney Warringah store is a great example of where being bigger is not the key – the tag line is that it is no longer a Department Store, but a “department of stories”, where customers are able to follow their brands.
  • Change management has been devolved to local accountability, which enables changes to become more rapid. Localisation of change results in more responsive management, leaving “clean up” of the exceptions that do not meet standards.
  • They regard the last mile delivery as still the hardest logistics challenge in Australia.

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