At least the performance was consistent. First half sales were up just 1.2 per cent on a comparable stores sales basis while the latest full year results show the same 1.2 per cent increase. The ‘highlights’ included better online sales, stronger customer loyalty and, wait for it, growth in the Myer Wine Club sales and membership! The ‘lowlight’ was the net profit fall of 22.6 per cent which begs the question whether the highlights even warranted mentioning. David Jone
s also relied on its growth in online sales as a distractor. It chose not to qualify this with numbers presumably because a high percentage increase off a very low base wouldn’t impress anyone. Unless I have missed it, Myer has followed suit.
One can hardly imagine that increased sales in the wine club would be of any significance. As for customer loyalty, one cannot put food on the table with increased loyalty and a 22 per cent decrease in NP.
Myer shares floated at $4.10 when it listed in 2009. At the time of writing it was trading at $2.17. Not pretty.
Investors were awaiting the full year results after the disappointing first half and a slow third quarter.
Numbers of a drop of 20 per cent in NP for the full year were being forecast but of course that was exceeded.
Paul Zahra received much criticism for his performance during his period as CEO of David Jones. Bernie Brookes seems to have largely been spared this – up until now that is.
On Wednesday it was reported that fashion retailers are suffering at the hands of the foreign entrants.
Well the foreign entrant which bought David Jones has not yet exposed its teeth let alone drawn blood.
To assume that there are no foreign Myer watchers out there would be naive.
And if Myer is bought, the CEO will presumably meet the same fate as Paul Zahra did.
But there is always the speaking circuit.
Stuart Bennie is a retail consultant at Impact Retailing www.impactretailing.com.au and can be contacted at stuart@impactretailing.com.au or 0414 631 702
