Myer has outlined plans to invest up to $50 million in reviving its branding, marketing strategy and omni-channel business to counter the fall in profit posted this morning.
Myer, which recently appointed Clemenger BBDO Melbourne to look after its advertising, is plotting a “significant” Christmas marketing strategy and a refresh of the Myer brand.
Leveraging the new creative partnership and strengthening the brand were two stated strategic priorities for the next year.
The $35 million to $50 million investment will also go towards building its “omni-channel” strategy, better training and rewards for staff, customer service improvements and its Myer Exclusive brands programme where it makes a higher margin on ranges that are not available anywhere else in Australia.
Myer Exclusive Brands now account for 20.3% of total sales.
In its full year results update today, the retailer said the investment will be “important to delivering the operational improvements and capabilities required to underpin long-term, sustainable growth”.
The department store chain today reported a 22% fall in net profit to $98.5 million for the year ending 26 July 2014, saying that the drop was anticipated as a result of its investments in online and store refurbishments. Comparable sales were up 1.2% to $3.1 billion over the year, and up 2.1% in the fourth quarter.
Myer said “significantly improved” digital direct marketing helped drive the 100% rise in online sales over the year, and an increased transaction value.
Myer has also expanded its in-house digital team to drive its marketing and omni-channel business. Daniel Bracken joined the chain at the start of September as marketing and merchandising director.
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