Myer axes 50 management staff, marketing lead

Myer has cut a further 50 positions from its store management and store support team, including group general manager of marketing Andrew Egan.

The cuts are the second round of large scale lay-offs for the department store in the last eight months, with over 30 executive positions cut last August, in order to reduce costs and barriers between the business and its customers – bringing the total number of executives lost within the last year in the realm of 80.

“We have to place the customer first, in every decision we make and every action we take,” a Myer spokesperson said.

“From doing a thorough review of our entire store management structure and a further review of the store support office… as a result of this, a number of administrative and management roles will be leaving the business to align our structure more closely with our customers.”

No customer facing team members have been affected by the cuts.

According to the spokesperson, this will enable the business to operate in a more efficient manner, improving the financial performance and shareholder value delivered.

Myer recently posted a rise in net profit for the first half FY19, increasing 3.1 per cent to $41.3 million, signalling that the brand’s customer-first turnaround strategy has some legs.

The retailer improved store layouts over the half-year, and launched the ‘My Store’ marketing campaign, which chief executive John King said had been received well by customers.

Despite this, Egan, who led the launch of the ‘My Store’ campaign, as well as the department store’s recent Christmas campaign, has been let go in this recent round of lay-offs.

“We thank Andrew for his contribution to Myer and particularly to our marketing and advertising team,” the spokesperson said. “We wish him all the best for the future.”

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Comments

8 comments

  1. Avatar

    Stuart Bennie posted on March 22, 2019

    Does this mean that they were overstaffed before? reply

  2. Avatar

    Mark posted on March 22, 2019

    Looks like it Stuart, years of incompetence reply

  3. Avatar

    John Snow posted on March 22, 2019

    I wonder about the comment - "we have to place the customer first". There are brands looking to do business with this department store, however the buying teams are uncontactable, you have to leave messages for no call backs .... they miss so many opportunities as they are closed off. reply

  4. Avatar

    MMMR posted on March 22, 2019

    Sounds top heavy to begin with which then creates more red tape, bureaucracy & inefficiencies. More doers, less executives, better customer experience > sales increase! But I do sympathise with what the affected individuals are going through. reply

  5. Avatar

    Shaun Elston posted on March 22, 2019

    Good question - most big box retailers are top heavy. Unless a Board level decision is made, then these retailers will continue to struggle. Being smart and realistic about streamlining management is a positive change, though those in the firing line may resist change and/or hinder the process (obviously). reply

  6. Avatar

    AD posted on March 24, 2019

    There is lot of turbulancecwithin the Senior executive team for a long time. They are purely managing their own positions and have no love lost for the store team. Stories of harassment, bullying, manipulation of records is very real. reply

  7. Avatar

    Chris posted on March 30, 2019

    "There are brands looking to do business with this department store, however the buying teams are uncontactable" This is not how Myer operates, they aren't a department store. They have a "mall within a mall" concept where they resell blocks of floor realestate that they've negotiated with center operators at a substantial discount to market rates. In some cases they're paying less that 5% per sq.m of what their competitors are paying outside, and they're still bleeding money. Overall, customers, suppliers, and centre operators are confused at what they're doing. reply

  8. Avatar

    Chris posted on March 30, 2019

    >Unless a Board level decision is made, then these retailers will continue to struggle. They need someone with retail and management experience to clear house and get a properly curated selection of premium brands back into the stores before they bleed out. They also need to get rid of the tiny suburban stores. Maybe have a "Click And Collect + Gym and Daycare" concept as a MAD strategy if Scentre et al won't break leases. Australia is screaming for a real department store and DJ's is on another planet. Someone light the Lew signal. reply

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