Myer Holdings Limited · ASX:MYR
Myer — Investor Day (November 2010)
48 slides from Myer's investor day presentation, Nov 5, 2010
Slide 1: Investor Day – November 2010
Myer Investor Day 5 November 2010 For personal use only Investor Day – November 2010 Business transformation delivers a solid platform for growth 5 November 2010 1 Stores FY11 1. 10 Imperatives (Store KPIs) 2. Priority One (Service Strategy) 3. MDP & Graduates 4. Shrinkage Strategy 5. myPOS An inter
Slide 2: FY11 Store Imperatives
Myer Investor Day 5 November 2010 FY11 Store Imperatives For personal use only 1. Sales 1 6. Exclusive Brands 6 2. Shrinkage 7. Safety 3. Costs 8. Myer One 4. Salaries 9. Myer Visa Card 5 Contribution 5. 10 Customer Care 10. Stores FY11 1 1. 10 Imperatives (Store KPIs) 2. Priority One (Service Strat
Slide 3: Vision
Myer Investor Day 5 November 2010 Vision For personal use only Service: We will drive a service and sales culture throughout the business and stores through a strategic focus on team culture and customer insights. We will adopt an innovative and customer led approach to customer service and store ma
Slide 4: Strategy
Myer Investor Day 5 November 2010 Strategy For personal use only Stores With: • Best in class Wayfinder signage • Transaction centres staffed all hours of trade • More effective Promotions and Ticketing strategy Strategy • Salary Investment in High Service d departments t t • Training programs that
Slide 5: Place: Store Directory & Directional Information
Myer Investor Day 5 November 2010 Place For personal use only Store Directory & Directional Information It’s all systems GO! External Customer Research tells us… Customers are prepared to wait for service but… nott prepared to wait to purchase 5
Slide 6: Place: Register Allocation
Myer Investor Day 5 November 2010 Place For personal use only Register Allocation • Transaction Centres in central locations manned all hours of trade • Registers in High Service Departments (Footwear) Transaction Centres: Fitting Knox Store Rooms R Example 6
Slide 7: Promotions & Ticketing
Myer Investor Day 5 November 2010 Promotions & Ticketing For personal use only Outcome Focus on Newness and Product Features and Benefits More effective planning and execution of offers Promotions & Ticketing Moving away from… • Over reliance on offers • Ineffective I ff ti communication i ti off of
Slide 8: People
Myer Investor Day 5 November 2010 People For personal use only • Reward & Recognition – High Hi h P Performers f Cl Club b – Spartan • Training – Induction – Selling Skills People High Performers Club • Total of 336 Members,, increase of 86 Members during FY10 • 70% higher sales than other Team Memb
Slide 9: People: Spartan and Training
Myer Investor Day 5 November 2010 People For personal use only Spartan See, Smile, Say Hello Badges awarded to Team Members based on customer compliments People Training Induction • Greater selling component • Myer expectations • Double time inducting new Team members Selling Skills • St Stepped d s
Slide 10: Way Communication
Myer Investor Day 5 November 2010 2 Way Communication For personal use only Improving communication Phase 1 Phase 2 Phase 3 Making life easier Doing a better job Best practice Pre-Christmas 2010 Post Christmas 2010 Pre-Christmas 2011 • Developing clear • Introduce new tools • Introduction of communi
Slide 11: Graduate Program
Myer Investor Day 5 November 2010 For personal use only 40 Graduates have participated over 4 g groups p 2007 – 2010… Graduate Program • Re-investment in management talent • Develop future leaders in the business 11
Slide 12: Graduate Program and Management Development
Myer Investor Day 5 November 2010 Graduate Program For personal use only • Strong emphasis on training and development • ‘Employer of Choice’ • Recruit the brightest and the best Management Development • 12 Month Program • The program consists of 3-4 rotations • Focus on: – Education – Experience –
Slide 13: Management Development
Myer Investor Day 5 November 2010 Management Development For personal use only • Develops future Sales Managers and Service Support pp Managersg • Senior Management Development Program develops future Store Managers Stores FY11 1 1. 10 Imperatives (Store KPIs) 2. Priority One (Service Strategy) 3. M
Slide 14: Shrinkage: Taking Control in FY10
Myer Investor Day 5 November 2010 Taking Control in FY10 For personal use only 1. CCTV Rollout Completed 2. Introduction of HOT Concept 3. Fitting Room Strategy 4. Merchandise Protection Investment 5. Compliance Management FY09 FY10 my store my shrinkage shrinkage is everybody’s business Maintaining
Slide 15: Theft and Fraud Loop
Myer Investor Day 5 November 2010 Theft and Fraud Loop For personal use only my store my shrinkage shrinkage is everybody’s business Stocktake Revolution Traditional Process Cycle Process my store my shrinkage shrinkage is everybody’s business 15
Slide 16: Close Circuit Television (CCTV)
Myer Investor Day 5 November 2010 Close Circuit Television (CCTV) For personal use only my store my shrinkage shrinkage is everybody’s business Stores FY11 1 1. 10 Imperatives (Store KPIs) 2. Priority One (Service Strategy) 3. MDP & Graduates 4. Shrinkage Strategy 5. myPOS An international class ret
Slide 17: For personal use only
Myer Investor Day 5 November 2010 For personal use only “The new system y is so much i k !” quicker “Opening p g and closing g the store happens almost instantly!” i t tl !” 17
Slide 18: myPOS
Myer Investor Day 5 November 2010 myPOS For personal use only Quick Facts • myPOS took 3 years to implement • Over $100m investment • Approximately 4000 registers were installed across 67 stores • Almost 13 000 Team Members were impacted • 400 kms of cable was used nationally • At its peak, the proj
Slide 19: Customer Loyalty
Myer Investor Day 5 November 2010 Overview For personal use only • Customer Loyalty • Connecting with customers • Christmas preview Customer Loyalty "Customer loyalty is when an organization receives the ultimate reward for the way it interacts with its customers. Loyal customers buy more, buy longe
Slide 20: Why MYER one?
Myer Investor Day 5 November 2010 Why MYER one? For personal use only 1. Channel – a direct line to our customers 2. Information – customer insight 3. Targeting – respond to customer needs 4. Measurement – level of engagement 5. Rewards – giving something back 39 1. Channel Comprehensive contact det
Slide 21: Information and Targeting
Myer Investor Day 5 November 2010 2. Information For personal use only We know so much – our customers have an expectation that we will use the details to respond to their needs 41 3. Targeting • Demographics • Behaviour • Needs • Triggers • M ti ti Motivations 42 21
Slide 22: Targeting - demographics
Myer Investor Day 5 November 2010 Targeting - demographics For personal use only 43 Targeting - demographics 44 22
Slide 23: Targeting - behaviour
Myer Investor Day 5 November 2010 Targeting - behaviour For personal use only 45 Targeting - behaviour 46 23
Slide 24: Targeting - triggers and Measurement
Myer Investor Day 5 November 2010 Targeting - triggers For personal use only 47 4. Measurement • MYER one sales • Member spend • Member response • Member satisfaction 48 24
Slide 25: Rewards
Myer Investor Day 5 November 2010 5. Rewards For personal use only 49 5. Rewards 50 25
Slide 26: Marketing focus
Myer Investor Day 5 November 2010 Marketing focus For personal use only • Advertise to drive sales • Balance driving sales with brand building – focus on new, unique, and exclusive • Own seasonal fashion launch, key gift-giving events, and position Myer as the destination for fashionable racewear •
Slide 27: Connecting with our customers
Myer Investor Day 5 November 2010 Connecting with our customers For personal use only 53 Connecting with our customers 54 27
Slide 28: Spring Racing / Love Christmas: Creative
Myer Investor Day 5 November 2010 Spring Racing For personal use only 55 Love Christmas: Creative • For Christmas we have developed a creative execution that positions Myer as THE destination for Christmas • Campaign creative communications will – Bring back the magic of Christmas – Is based on a em
Slide 29: Love Christmas: Myer's Angels
Myer Investor Day 5 November 2010 For personal use only 57 Love Christmas: Myer’s Angels 58 29
Slide 30: Digital
Myer Investor Day 5 November 2010 Digital For personal use only DIGITAL multi-channel interaction marketing / partners strategy advertising Sales Growth / Effective / Efficient Customer Engagement / Traffic / sales / Operation Experience. Listening Brand Advocacy Ease Of Shopping 59 Online / e-comme
Slide 31: Initiatives over last months
Myer Investor Day 5 November 2010 Initiatives over last 18 months… For personal use only Online Operations Marketing • Extensive market / customer • iPhone App research • P U shows Pop-Up h • Tiles on myer.com.au (speed / • Threads ease to gifts site) • Facebook Page • Store locator (Google Maps) •
Slide 32: Store Locator, Gift Cards and Greeting Cards
Myer Investor Day 5 November 2010 Store Locator (Google Maps) For personal use only 63 Gift Cards GC Denomination’s available • $25, $50, $100, $150, $200, $300, $500. Greeting Cards (45 designs) • Anniversary • Baby • Birthday • Blank • Congratulations C t l ti • Engagement • Goodbye & Good Luck •
Slide 33: Mobile launches and online learnings
Myer Investor Day 5 November 2010 Mobile launches… For personal use only • May 2010 Mobile site for myer.com.au • June 2010 iPhone App pp • Nov 2010 iPad App (Emporium magazine) 65 Our learnings Summary • Gifting is the primary purchase driver, • We have sold the categories that we’ve broadly offere
Slide 34: Approach to on-line development
Myer Investor Day 5 November 2010 How we are approaching on-line development… For personal use only • Market awareness and monitoring – local and international, • Maintain momentum and current Australian Department Store advantage, • Make considered investment – scalable, responsive to customer dire
Slide 35: In Store Theatre and Local Area Marketing
Myer Investor Day 5 November 2010 In Store Theatre For personal use only • Strive to be an exciting and inspirational place to shop that entertains our customers • In-store theatre, theatre entertainment and activities e e.g. g face painting for children, in-store appearance by David Beckham or Kyli
Slide 36: Community and Melbourne Cup Carnival
Myer Investor Day 5 November 2010 Community For personal use only • ‘Giving back’ to the community has always been part of the fabric of Myer • In 2010 Myer donated to philanthropic causes including Genes for Jeans Day, Movember, National Bandana Day and the Royal Children’s Children s Hospital • Ag
Slide 37: Local Racing and Melbourne Floor Launches
Myer Investor Day 5 November 2010 Local Racing For personal use only • Sponsorship of 23 regional race meets across the country from the Hobart Cup to the Ballarat Cup • Template approach – naming rights to Myer Fashions on the Field Field, corporate hospitality opportunities and rewarding Myer One
Slide 38: Store Openings and Refurbishments / Agenda
Myer Investor Day 5 November 2010 Store Openings and Refurbishments For personal use only • Major events to ‘launch’ new stores and refurbishments • Range of activities including fashion parades, celebrity appearances, product offers, supplier engagement and in-store activities • Jennifer Hawkins at
Slide 39: New Store Selection Criteria
Myer Investor Day 5 November 2010 New Store Selection Criteria For personal use only • Gap Analysis – Stores per capita – Market Share – Floorspace ratio analysis 77 Assess Demographic/Customer Profile • Population & Growth • Household Incomes • DSTM Spend – (Department Store Type Spend) • MYER One
Slide 40: Sales Forecasts & Cannibalisation
Myer Investor Day 5 November 2010 Sales Forecasts & Cannibalisation For personal use only Forecast Market Share of DSTM in Trade Area + Forecast Sales beyond the Trade Area = Forecast F t Store St Sales S l Werribee • Sales Growth Forecasts Share of MYER one Spend • Cannibalisation 79 Assess Potenti
Slide 41: Regional Stores
Myer Investor Day 5 November 2010 Occupancy costs decrease as % to sales For personal use only 81 Regional Stores REGIONAL (19) Existing (14) Approved (5) Albury Dubbo Orange Mackay Ballarat Erina Toowoomba Townsville Bendigo Geelong Wagga Shell Harbour Cairns Launceston Wollongong Tuggerah Charlest
Slide 42: Demographic Comparison: Cairns and Mackay
Myer Investor Day 5 November 2010 Demographic Comparison For personal use only Trade Area Characteristics National Cairns Mackay Name of Centre N/A Cairns Central Canelands MAT of Centre (Total Centre Sales) N/A $352,400,000 $287,000,000* Size of Centre M2 N/A 51,944 39,200 Sales Estimates N/A >$35m
Slide 43: Demographic Comparison: Penrith and Fountain Gate
Myer Investor Day 5 November 2010 Demographic Comparison For personal use only Trade Area Characteristics National Penrith Fountain Gate Westfield Westfield Name off Centre C Penrith Fountain Gate MAT of Centre (Total Centre Sales) $577,900,000 $701,000,000* Size of Centre M2 88,853 132,133 Sales Es
Slide 44: Demographic Comparison: Castle Hill and North Ryde
Myer Investor Day 5 November 2010 Demographic Comparison For personal use only Trade Area Characteristics National Castle Hill North Ryde Name of Centre Castle Towers Top Ryde MAT of Centre (Total Centre Sales) $638,000,000 $443,000,000* Size of Centre M2 101,196 78,000 Sales Estimates >$45m >$30m E
Slide 45: Robina
Myer Investor Day 5 November 2010 Robina For personal use only 89 90 45
Slide 46: For personal use only
Myer Investor Day 5 November 2010 For personal use only 91 92 46
Slide 47: Top Ryde
Myer Investor Day 5 November 2010 Top Ryde For personal use only 93 94 47
Slide 48: Store Design
Myer Investor Day 5 November 2010 Store Design For personal use only Demographics Environment Vendor Input & Feedback Myer One Service Customer Data STORE DESIGN Procurement Shrinkage Profit / International Product Mix Space benchmarking Optimisation 95 48