3 reasons Myer is on the way out
The Financial Review suggested yesterday that Solomon Lew’s Premier Investments might be looking at the possibility of acquiring Myer.
Setting aside the fact that a ‘possibility’ may not constitute news, I would have thought that Premier investments would not be serving its shareholders well if it were not looking at the merits of purchasing Myer.
The performance of Myer over recent months and years has been less than impressive despite the considerable value that must still lie in the brand and whatever corporate knowledge is left in the business.
I would also argue that there is a lot at Myer that might be readily addressed, including:
- The poor customer experience.
- The absence of any constructive point of difference.
- The less than inspiring product range.
Compare this to the success of Just Jeans, Peter Alexander and Portman’s – just three of the Premier brands which stand out in terms of their:
- Astute market targeting.
- Focus on building a brand.
- Strong locations.
These and other notable features of the Premier Investments formula could all help the breathe new life into the rapidly dying Myer – a business likely to die even faster as Woolworths South Africa invests more and ceases the obvious opportunity for market dominance.
- Have you ever enjoyed shopping at Myer?
- What attracts you to shop at Myer?
- What is special about the Myer product range?
A previous Financial Review article highlights the strong management at Premier Investments.
I would argue that this is in stark contrast to the situation at Myer.
From an Australian icon perspective – I would argue that someone needs to buy Myer or it will just fade away. I find it hard to believe that the change of CEO, driven by an internal promotion will be enough to save this struggling giant of Australian retailing.
When I look at Myer I wonder why Australian business holds its management expertise in such high regard. I see in Myer no evidence of
- Customer drive product selection.
- Customer focused service.
- Customer driven Innovation.
I see a business without a brand.
Am I wrong?
- Customer experience is central to retail success.
- Without a point of difference you are at best the default option.
- There is real scope for innovation in retail and winner will grasp it.
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