Data analytics to drive Myer's $600m transformation

Myer has revealed plans to invest over $600 million to revamp its business to focus on improved productivity, omni-channel retailing and a superior customer experience, and data analytics is at the heart of the new transformation project.

Advanced data analytics of the retailer’s customer base and store catchments has been employed to build a profile of customers and areas where there is the greatest opportunity to improve the shopping experience.

Planned investments include $150 million in capex and implementation costs to reallocate around 41,000 square metres of underperforming store space to higher-value categories and services.

Myer will also spend around $100 million to enhance the omni-channel experience and redesign the company’s online presence. As part of this push the company aims to increase the proportion of online sales using Click & Collect, and to reduce order fulfilment costs by around 35%.

Approximately $150 million will be put towards rolling out digital hubs and Wi-Fi as well as other initiatives to improve the customer experience, including introducing restaurants, cafes and event spaces at priority stores.

The company has established a Transformation Office to coordinate the execution of the new project.

“The New Myer strategy is built on providing a more focused and relevant merchandise offer to serve a more valuable customer and a better shopping experience for everyone who comes to our stores,” Myer CEO Richard Umbers commented.

“The challenges facing the retail sector are well known, and we understand them deeply. Our strategic response to these issues defines a clear agenda for success.”

Image courtesy of Timothy H under CC