Myer Holdings Limited · ASX:MYR
Myer — Investor Day (May 2012)
39 slides from Myer's investor day presentation, May 24, 2012
Slide 1: Investor Day 2012: Introduction
MYER Investor Day 2012 For personal use only INVESTOR DAY 2012 24 May 2012 Introduction 24 May 2012 Bernie Brookes CEO 24 May 2012
Slide 2: Overview and Q3 in summary
MYER Investor Day 2012 Investor Day 2012 For personal use only • Overview • Q3 in summary • Update on delivering our five point plan 1. Improve customer service and efficiency 2. Enhance our merchandise offer 3. Strengthen our loyalty program 4. Build a leading omni-channel offer 5. Optimise our sto
Slide 3: Progress on delivering our plan
MYER Investor Day 2012 Progress on delivering our plan For personal use only 1. Improve customer service and efficiency 2. Enhance our merchandise offer 3. Strengthen our loyalty program 4. Build a leading omni-channel offer 5. Optimise our store network “Investing to deliver shareholder returns” 5
Slide 4: Customer service - Commission program and Personal Shopping
MYER Investor Day 2012 Customer service - Commission program For personal use only • Launched in March, a profit share model – focused on sales and profit growth – rewards attachment selling – fewer price adjustments in stores – centrally administered 7 Customer service - Personal Shopping Service •
Slide 5: Customer service - Shared staffing model and shrinkage
MYER Investor Day 2012 Customer service - Shared staffing model For personal use only Six month trial – with Sealy and Sleepmaker Improved roster Seamless service Increased market coverage experience for share customers Increased employee Supplier Team Increased Team satisfaction Members use POS Mem
Slide 6: Enhance merchandise offer
MYER Investor Day 2012 2. Enhance merchandise offer For personal use only • Further brand acquisitions and exclusivity – Trent Nathan – Grab • Continued markdown management • Growth in MEBs continues • Sourcing offices supporting growth in MEBs Grab • New department store exclusive brands pic – Coas
Slide 7: Merchandise - Price harmonisation
MYER Investor Day 2012 Merchandise - Price harmonisation For personal use only • Not unique to Australia • Working with our suppliers to ensure we are globally competitive • Brand value is very important, not just lowest prices • Sourcing offices drive competitiveness • Over 20% of Myer range is exc
Slide 8: Strengthen loyalty program; build omni-channel offer
MYER Investor Day 2012 3. Strengthen our loyalty program For personal use only PERSONAL PERSONALISED MESSAGES: INFORMATION •You’re nearly there gift card; tier INCLUDING: increase/decrease •Name •Don’t you love us? •Points balance •Never spent, did you ever love us? •Tier •Membership •You have an ou
Slide 9: Indicative impact of omni-channel to profit and cost
MYER Investor Day 2012 Indicative impact of omni-channel to profit and cost For personal use only Bricks • Gross profit ~42% and • Costs ~34% mortar • EBIT ~8.25% • Gross profit ~35% Clicks • Costs ~21% • EBIT ~16% The mix of business differs with more hard goods, Distribution Centre rents lower tha
Slide 10: For personal use only
MYER Investor Day 2012 For personal use only FOUNTAIN GATE TOWNSVILLE 24 May 2012
Slide 11: Sustainability at Myer
MYER Investor Day 2012 For personal use only SHELL HARBOUR Sustainability at Myer 2011 KEY ACHIEVEMENTS 2012 FOCUS • Strategy Communication- formal launch • Strategy- develop ‘whole of business’ of sustainability Team Member Update sustainability objectives 2011 • Energy Efficiency- develop energy •
Slide 12: Competitive advantages support the plan
MYER Investor Day 2012 Competitive advantages support the plan For personal use only • Significant customer service investment • Completed significant capital investment in supply chain, merchandise, POS, IT systems • Vertically integrated exclusive brand model supported by sourcing offices • Unique
Slide 13: Myer will be famous for
MYER Investor Day 2012 Myer will be famous for For personal use only Myer will be the first choice when shopping for fashion, cosmetics and the home. We will have the largest range of wanted brands and styles that offer newness, fashionability, quality and value. Our product offer and store environm
Slide 14: Myer's merchandise offer
MYER Investor Day 2012 Myer’s merchandise offer For personal use only The brand hierarchy is split into various segments: • Myer Exclusive Brands – Brands developed by Myer – Designers @ Myer – National Brands purchased by Myer – Licensed National brands • International and National brands • Concess
Slide 15: Myer Exclusive Brand distribution
MYER Investor Day 2012 Myer Exclusive Brand distribution For personal use only • Significant variation in MEB mix between stores – CBD store (~10% sales) – Regional store (~25% sales) • Significant variation between categories – Youth and Childrenswear (>50% MEBs) – Opportunities in under-represente
Slide 16: Brands developed by Myer
MYER Investor Day 2012 Brands developed by Myer For personal use only Top 10 Brands FY2011 (60% of total MEB sales) >$60 m >$45 m >$35 m Each >$20 m >$30 m >$25 m 32 MYER EXCLUSIVE BRANDS 24 May 2012
Slide 17: Designers @ MYER
MYER Investor Day 2012 Designers @ MYER For personal use only • Affordable designer ranges • Designed Exclusively for Myer in conjunction with renowned designers • Developed by the Myer team 33 DESIGNERS @ MYER Designers @ MYER 34 DESIGNERS @ MYER 24 May 2012
Slide 18: Designers @ Myer – Jane Lamerton
MYER Investor Day 2012 Designers @ Myer – Jane Lamerton For personal use only "Jane Lamerton is all about style. Distinctive designs to live life by. Modern stylish co-ordinated quality pieces that are exclusive to Myer." 35 DESIGNERS @ MYER Jayson Brundson 24 May 2012
Slide 19: National Brands purchased by Myer
MYER Investor Day 2012 National Brands purchased by Myer For personal use only • Tough retail environment has created opportunities to purchase National Brands • Purchased brands to enhance merchandise offer or protect sales • Leveraging credible brand already established in the marketplace 37 Natio
Slide 20: Licensed National Brands
MYER Investor Day 2012 For personal use only 39 Licensed National Brands • Department store exclusive agreements • Credible National Brands with an Exclusive Brand Margin that allows Myer to leverage off the brand position • Jag handbags, Australian House & Garden from August 2012 40 LICENSED NATION
Slide 21: Licensed National Brands – Jag accessories and handbags
MYER Investor Day 2012 For personal use only 41 Licensed National Brands – Jag accessories and handbags “Iconic Australian brand offering quality work to weekend accessories that are both modern and functional” 42 LICENSED NATIONAL BRANDS 24 May 2012
Slide 22: Brand extensions – Wayne Cooper
MYER Investor Day 2012 Brand extensions – Wayne Cooper For personal use only Wayne Cooper: the signature label is an exclusive collection of aspirational and wearable pieces Wayne by Wayne Cooper: “an Exclusive partnership with a leading designer for fun and outgoing women …” 43 DESIGNERS @ MYER 44
Slide 23: What do MEBs mean to our customers?
MYER Investor Day 2012 What do MEBs mean to our customers? For personal use only • Brand awareness is high for our brands • Protecting and developing them as real brands is a focus • Funds are allocated to position brands – Advertising – Online – Team incentives – In store signage and visual merchan
Slide 24: Myer Sourcing Offices
MYER Investor Day 2012 For personal use only Myer Sourcing Offices Myer Sourcing Asia Limited • Sourcing offices are performing well, fully operational team • Improvements on pricing - above expectation • Increased supply base into new categories, improvement in supply base • Improving speed to mark
Slide 25: The future for Myer Sourcing Asia Limited
MYER Investor Day 2012 The future for Myer Sourcing Asia Limited For personal use only • Further development of team capability and functionality • Build on our direct purchases with China suppliers • Focus on improving lead times and speed to market • Increased sourcing in emerging markets • Contin
Slide 26: Vertical integration - Bauhaus
MYER Investor Day 2012 Vertical integration - Bauhaus For personal use only “Bauhaus is an accessible youth brand for guys who want to look fashionable without standing out from the crowd. Achieving the right look is important to the Bauhaus guy but so is quality, fit, and good value. He trusts Bauh
Slide 27: What are we responding to?
MYER Investor Day 2012 For personal use only What are we responding to? 53 The state of the market Online shopping DOMESTIC v OVERSEAS • Online retail spending accounts for 5.2% of discretionary spending • $4.2 billion out of $9.5 billion was spent on overseas retailers in 2010 • 55% of online depar
Slide 28: Cashing in on net shopping
MYER Investor Day 2012 Cashing in on net shopping Online sales as percentage of total sales – FY11 For personal use only 14% 37% Growth in past year 35% 28% 73% 40% 31% Sources: Internet Retailer Top 500 Guide; Company data 55 WHAT ARE WE RESPONDING TO? MYER VS TOP Global US PERFORMERS precedents So
Slide 29: The omni-channel opportunity
MYER Investor Day 2012 The omni-channel opportunity For personal use only • Shoppers in the UK are consolidating omni-channel spend with a ‘portfolio’ of favourite retailers • Over 60% have consolidated shopping between 2 and 5 favoured retailers • 51% spending a little to a lot more with favourite
Slide 30: Online history and merchandise mix
MYER Investor Day 2012 2008 2009 2010 2011 2012 For personal use only Hampers site from Selling October Gifts Online 2007 400 skus extended to 4,100 skus myer.com.au 3,900 by end of 2010 Increased focus Rebuilding on ‘buy online’ 13,000+ skus 59 WHAT ARE WE RESPONDING TO? Merchandise Mix Future Merc
Slide 31: 'My Favourite Bra' promotion online success
MYER Investor Day 2012 ‘My Favourite Bra’ promotion online success For personal use only • Featured bras moved to top of the category page and price reductions more visible to customer with sale dinki and use of ‘was/now’ pricing • Opportunity to use specific marketing collateral and create a separa
Slide 32: The mission and the strategy
MYER Investor Day 2012 The mission For personal use only • Make Myer the leading omni- channel retailer in Australia/NZ • Make myer.com.au the #1 online department store destination 63 MISSION / STRATEGY The strategy • DEFEND Myer’s market share in offline and online retail through a best-of-breed e
Slide 33: Omni-channel roadmap
MYER Investor Day 2012 Omni-channel roadmap For personal use only SCALABLE BUILD DELIVERING PLATFORM CAPABILITY SOLUTIONS • Transactional website 9 • Marketing agility • In store multi-channel experience • Core infrastructure 9 • Customer order management • Range optimisation • Range / Price / Promo
Slide 34: Phase underway: work in progress and future
MYER Investor Day 2012 Phase 2 - Underway For personal use only • Retek Integration • Web Content Management and Site consolidation • Mobile sales platform and QR code activity • Customer ratings and reviews, customer wish lists • Promotional spots, Complex promotions • Price consistency increased •
Slide 35: Right stock, in right location, at right time
MYER Investor Day 2012 Right stock, in right location, at right time For personal use only • Meet the customer wherever, whenever, however they want • Tools to make this happen • Endless aisle – leveraging our range • Loyalty across every touch point / channel • Company wide integration of fulfilmen
Slide 36: Key success factors
MYER Investor Day 2012 Key success factors For personal use only • Customer Led and customer engagement • Range. Real depth and choice • Brands. Our point of difference and uniqueness • Fulfillment and supply chain • Integrate and Seamless customer experience: online, mobile, in store, customer cont
Slide 37: MYER one – a key competitive advantage
MYER Investor Day 2012 For personal use only MYER one – a key competitive advantage 73 MYER one customers are engaged but there are opportunities to improve • MYER one over 4 million members • MYER one customer shops 11 times per year • Non-MYER one customer shops 5 times per year • We have 1.6 mill
Slide 38: Customer insights – our competitive advantage
MYER Investor Day 2012 Customer insights – our competitive advantage For personal use only 75 MYER ONE UPDATE Valuable customer insights – store network • Forest Hill – small format store, store closed January • Analysis of customer shopping habits in catchment area • Customers choosing to shop at n
Slide 39: Customer insights – merchandise; Disclaimer
MYER Investor Day 2012 Customer insights – merchandise For personal use only • Successful Apple iPad 3 launch • What drives this customer? • Who is this customer? • What else do they buy with us? 77 MYER ONE UPDATE Disclaimer All numbers are unaudited. This release may contain “forward-looking state