Myer department store announced a major strategic reorganization after it was revealed that the store suffered a record annual loss of $ 486 million in 2017-18.
Despite having already cut costs to remain competitive at the beginning of the year, the retailer's struggling sales still plummeted 3.2 percent to $ 3.1 trillion.
As a result, the departmental store had a huge loss of $ 486 million, the first since its public listing on the Australian Stock Exchange in 2009.
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Myer department store (pictured) announced a major reorganization of the strategy after it was revealed that the store suffered a record annual loss of $ 486 million
That said, before restructuring costs and significant expenses, the retailer's net profit was $ 32.5 million, but even that was 52.2 percent lower than the previous year.
Myer's chief executive John King, recently appointed, described the result as disappointing and said that "shareholders deserved better," The Australian reported.
The price of Myer's shares was also affected, with a drop of more than five percent.
King promised to "put customers first" after he announced a major overhaul and review of the distressed retailer who will see him visit 44 of his 70 stores.
"With this client in mind, we are making changes in our product ranges, store designs and online offerings, and we have worked to influence the way we will market Christmas 2018," he said.
As part of the strategy change, King said Myer will implement a new plan & # 39; Customer First & # 39; aimed at improving the customer experience.
He said the customer-centric update will improve the shopping experience, improve "factory-to-customer" efficiency and accelerate cost reduction.
Despite the terrible decline in store sales, Myer (pictured) had better online performance
The CEO also announced that Myer will launch a new and improved website later in the year.
Despite the terrible decline in store sales, the retailer had a much better online performance, undoubtedly the impetus for the renewed website.
Myer is willing to save millions after Ambassador Jennifer Hawkins (pictured) is released from her $ 5 million contract in November
During the past year, online sales increased 34.1 percent to $ 192.5 million, with total online sales now accounting for 7.7 percent of total retailer sales.
Mr. King was taken aboard by Myer in June to help rectify the damages caused by the decrease in sales.
As part of his plan to recover losses, the former head of the iconic British retailer House of Fraser has been working hard to cut costs whenever possible.
He has already retired from Myer's traditional store in the lavish Melbourne Cup Birdcage, and let go of executive management in an attempt to save money.
The retailer is also willing to save millions after Ambassador Jennifer Hawkins is released from her $ 5 million contract in November.