Investor Day – November 2010investor.myer.com.au/DownloadFile.axd?file=/Report/ComNews/... · Investor Day – November 2010 ... An international class retail busi ness providing

Myer Investor Day 5 November 2010

1

Investor Day – November 2010

5 November 2010

Business transformation delivers a solid platform for growth

1

Stores FY111. 10 Imperatives (Store KPIs)2. Priority One (Service Strategy)3. MDP & Graduates4. Shrinkage Strategy5. myPOS

2

An international class retail business providing inspiration to everyone


2

1 Sales 6 Exclusive Brands

FY11 Store Imperatives

1. Sales2. Shrinkage3. Costs4. Salaries5 Contribution

6. Exclusive Brands7. Safety8. Myer One9. Myer Visa Card10 Customer Care5. Contribution 10. Customer Care

Stores FY111 10 Imperatives (Store KPIs)1. 10 Imperatives (Store KPIs)2. Priority One (Service Strategy)3. MDP & Graduates4. Shrinkage Strategy5. myPOS5. myPOS

An international class retail business providing inspiration to everyone4


3

Service:

We will drive a service and sales culture throughout the business and stores through a

Vision

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 management.

In Store Operations:

We will actively identify opportunities to improve store productivity and introduce

Vision

improve store productivity and introduce efficiencies to streamline operations.

We will leverage new technologies, systems and processes to automate tasks, improve accuracy and support our customer service strategy.


4

• Best in class Wayfinder signageStores With:

Strategy

• Transaction centres staffed all hours of trade

• More effective Promotions and Ticketing strategy

Strategy

• Salary Investment in High Service d t tdepartments

• Training programs that build a selling culture

• Improved Communication processes


5

Place

Store Directory & Directional InformationIt’s all systems GO!

External Customer Researchtells us… areCustomers are prepared to wait

for service but…tnot prepared to wait to

purchase


6

Place

Register Allocation• Transaction Centres in central locations manned all hours of trade

• Registers in High Service Departments (Footwear)Departments (Footwear)

Fitting R

Transaction Centres:

RoomsKnox Store Example


7

Promotions & Ticketing

OutcomeFocus on Newness and Product Features and Benefits

More effective planning and execution of offers

Promotions & TicketingMoving away from…

• Over reliance on offers

I ff ti i ti f ff• Ineffective communication of offers

• Missed opportunities

Moving toward…• Focus on newness

• Improved store execution

• Increase customer conversion


8

People

• Reward & RecognitionHi h P f Cl b– High Performers Club

– 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

Members• Plans to grow HP Club to 1000

Members by end of FY12Members by end of FY12


9

People

Spartan

See, Smile, Say Hello

Badges awarded to Team Members based on customer compliments

People

Induction• Greater selling component

Training• Greater selling component• Myer expectations • Double time inducting new Team members

Selling SkillsSt d lli• Stepped selling program

• Behaviours and attitude• All team members to be trained


10

2 Way CommunicationImproving communication

Phase 1 Phase 2 Phase 3

Making life easier

Pre-Christmas 2010

• Developing clear communication

Doing a better job

Post Christmas 2010

• Introduce new tools and communication

Best practice

Pre-Christmas 2011

• Introduction of Technologycommunication

Standardsand communication mediums

Technology




11

40 Graduates have participated over 4 groups 2007 – 2010…g p

Graduate Program

• Re-investment in management talent

• Develop future leaders in the business


12

Graduate Program

• Strong emphasis on training and development

• ‘Employer of Choice’

• Recruit the brightest and the best• Recruit the brightest and the best

Management Development

• 12 Month Program• The program consists of 3-4

rotations • Focus on:

– Education– Experience– Exposure


13

Management Development• Develops future Sales Managers and

Service Support Managerspp g

• Senior Management Development Program develops future Store Managers




14

Taking Control in FY10

1. CCTV Rollout Completed

3.

4.

2.

Fitting Room Strategy

Merchandise Protection Investment

Introduction of HOT Concept

FY09 FY10

my store my shrinkageshrinkage is everybody’s business

5. Compliance Management

Maintaining Momentum in FY11Shrinkage Management Booklet

Shrinkage In A Box (SIB)

Theft and Fraud Intelligence Loop

Stocktake Revolution


Stocktake Revolution

Closed Circuit Television (CCTV)


15

Theft and Fraud Loop


Stocktake RevolutionTraditional Process

Cycle Process



16

Close Circuit Television (CCTV)





17

“The new system is yso much i k !quicker!”

“Opening and closing p g gthe store happens

i t tl !”almost instantly!”


18

Quick Facts

• myPOS took 3 years to implement

myPOS

• 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 project team reached over 110 Team Member

Progress

• 61 stores completed

myPOS

p

• Only 6 to go!

• All Stores Completed by Mid November


19

Overview

• 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 longer and tell more people - that's true customer

loyalty.”*

*Source:- Ellen Goodwright, www.customerservicebasics.com


20

Why MYER one?

1. Channel – a direct line to our customers2. Information – customer insight2. Information customer insight3. Targeting – respond to customer needs4. Measurement – level of engagement5. Rewards – giving something back

39

Comprehensive contact detailsm

1. Channel

m

m

40


21

We know so much – our customers have an expectation that we will use the details to respond to their needs

2. Information

41

3. Targeting

• Demographics

• Behaviour• Behaviour

• Needs

• Triggers

M ti ti• Motivations

42


22

Targeting - demographics

43

Targeting - demographics

44


23

Targeting - behaviour

45

Targeting - behaviour

46


24

Targeting - triggers

47

4. Measurement

• MYER one sales

• Member spendMember spend

• Member response

• Member satisfaction

48


25

5. Rewards

49

5. Rewards

50


26

Marketing focus

• 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

• Engage customers wherever their eyeballs areEngage customers wherever their eyeballs are • Targeted cross-platform media campaigns

(eg digital)• Capitalise on MYER one as competitive advantage

51

Connecting with our customers: 2008

Letterbox Catalogue Magazine insert Website

TVC MYER one Fashion parade In-store visual merchandise

52


27

Connecting with our customers

53

Connecting with our customers

54


28

Spring Racing

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 emotional rather than transactional connection

I b t f– Is about fun– Looks at Christmas completely different to the past

56


29

57

Love Christmas: Myer’s Angels

58


30

DIGITAL

Digital

multi-channel strategy

interactionpartners marketing / advertising

Sales Growth / Effective / Efficient

OperationCustomer

Experience.Ease Of Shopping

Engagement / Listening

Traffic / sales / Brand Advocacy

59

DIGITAL

Online / e-commerce as part of Digital

multi-channel strategy

interactionpartners marketing / advertising

Ecommerce Twitter Display Employees

Other?In-Store Kiosks

Customer Service Centre

MobileStores

Other?Blogs

YouTubeFacebookTumblr

Search engine optimisation

Search engine maximisation

p yadvertising

Other?Suppliers (non-merch)

Suppliers (merch)

Shareholders

60


31

Initiatives over last 18 months…

Online Operations • Extensive market / customer

research

Marketing• iPhone App

P U hresearch• Tiles on myer.com.au (speed /

ease to gifts site)• Store locator (Google Maps)• Expanded Gift Card designs and

choice of denominations

• Pop-Up shows• Threads• Facebook Page• Increased use of Video• YouTube• Emporium App on the iPad

• Greeting Cards• Mobile • Improving fulfilment processes• New Online Operations Manager

– Nov 2010

• Emporium App on the iPad

61

Tiles on myer.com.au

• Home-page reflects a suite of promotional tiles allowing for acceleration of sales.

62

• Online / Marketing teams have implemented an integrated marketing proposal / plan.


32

Store Locator (Google Maps)

63

Gift Cards

GC Denomination’s available• $25, $50, $100, $150, $200,

$300, $500.

Greeting Cards (45 designs)• Anniversary• Baby• Birthday• Blank

C t l ti

64

• Congratulations• Engagement• Goodbye & Good Luck• Thank-you• Wedding• Myer Standard Greeting


33

Mobile launches…

• May 2010 Mobile site for myer.com.au • June 2010 iPhone Apppp• Nov 2010 iPad App (Emporium magazine)

6565

Our learnings

Summary• Gifting is the primary purchase driver,• We have sold the categories that we’ve broadly offered on-line,• Average Transaction Value online – more than double ATV in Store,• There is demand for product not ranged in local Stores, ie. high fashion

/price or niche Brands,• MYER One growth opportunity on line• MYER One growth opportunity on-line,• A best seller is a best seller in any market, e.g Freeze-frame purchases

in Karratha,• 28% of purchases come from overseas.

66


34

How we are approaching on-line development…

• Market awareness and monitoring – local and international,• Maintain momentum and current Australian Department Store advantage,• Make considered investment – scalable, responsive to customer direction,

– Won’t assume a ‘build it and they will come’ approach• Remain focused that multi channel (sum of parts) solution grows market

share,• Continue to evolve:Continue to evolve:

– Plans on Kiosks,– Mobile,– Enterprise CRM solution

67

Major Events

• Strong commitment to ‘major events’ to mark significant milestones from Mothers Day to Boxing Day sales

• Major seasonal fashion launches – Melbourne in Autumn/Winter and Sydney in• Major seasonal fashion launches – Melbourne in Autumn/Winter and Sydney in Spring/Summer – launch the brands, trends and styles

• Christmas – special focus for activity in all major downtown markets to drive traffic and sales

• Strong community involvement in major events

• Series of major corporate events across the business

68


35

In Store Theatre

• Strive to be an exciting and inspirational place to shop that entertains our customers

• In-store theatre entertainment and activities e g face painting for• In-store theatre, entertainment and activities e.g. face painting for children, in-store appearance by David Beckham or Kylie Minogue

• Drives foot traffic and sales

• Strong connection with suppliers and partners for relationship building

• Strong integration across all areas of the business

• The level of activity varies between the size of the store• The level of activity varies between the size of the store

• Strong point of difference with our competitors

69

Local Area Marketing

• Since 2006, millions invested in local markets to ensure strong brand awareness and community engagement

• Store Managers given ‘pool of money’ to spend on local events charities in-store• Store Managers given pool of money to spend on local events, charities, in-store activities, sponsorship and customer or community focussed initiatives

• Investment choices given back to the stores who know their communities best

• New program for Christmas 2010 for all stores to drive traffic at peak trading period

• Local Area Marketing represents cornerstone of the business and a strong point of difference with competitors

70


36

Community

• ‘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 HospitalNational Bandana Day and the Royal Children s Hospital

• Agreement to raise >$1 million for the Olivia Newton-John Cancer and Wellness Centre over four years. Many sponsor events and activities with e.g. Salvation Army through the ‘Spirit of Christmas CD and Vision Australia through sponsorship of ‘Carols by Candlelight’ and the Christmas gift wrap across our stores

71

Melbourne Cup Carnival

• Myer’s biggest single investment in a sponsorship property

• In the 150th year, new double-storey Myer Fashions on the Field enclosureenclosure

• Myer is synonymous with racing through our naming rights ownership of ‘Myer Fashions on the Field’ and through the marquee in the ‘birdcage’

• Worked with key suppliers and managers to boost ‘celebrity’ involvement with stars such as Dame Edna Everage, ‘Scary Spice’, Georgia May Jagger and Jerry HallGeorgia May Jagger and Jerry Hall

• Capitalise on Melbourne Cup Carnival through similar racing events and activities across the country

• Preparations underway for the 50th anniversary of Myer Fashions on the Field in 2012

72


37

Local Racing

• 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 corporate hospitality• Template approach – naming rights to Myer Fashions on the Field, corporate hospitality opportunities and rewarding Myer One Customers

• Reinforce Myer as home of race wear

• Significant sales opportunities and new brand proposition

• Tap into regional race events during Melbourne Cup Carnival

73

Myer Melbourne Floor Launches

• Each floor opening has been accompanied by entertainment, celebrity appearances, in-store activities and offers to customers to draw crowds into the store

• Suppliers and partners already identifying opportunities to drive traffic and sales• Suppliers and partners already identifying opportunities to drive traffic and sales

• The iconic Myer Christmas Windows opened to massive crowds this morning

• Myer Melbourne turns 100 in 2011 – to be celebrated with a gala VIP ball and public event

74


38

Store Openings and Refurbishments

• Major events to ‘launch’ new stores and refurbishments

• Range of activities including fashion parades, celebrity appearances, product offers, supplier engagement and in-store activitiessupplier engagement and in-store activities

• Jennifer Hawkins attends most of these events – connection with customers is significant

75

Agenda

1. New Store selection criteria2. Regional Stores2. Regional Stores3. Growth Corridor Stores4. Metro In Fill Stores TownsvilleTownsville

Top Top RydeRydeRobinaRobina WerribeeWerribee76


39

New Store Selection Criteria

• 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 Penetration

78


40

Sales Forecasts & Cannibalisation

Forecast Market Share of DSTM in Trade Areaof DSTM in Trade Area+Forecast Sales beyond the Trade Area

F t St S l= Forecast Store Sales• Sales Growth Forecasts• Cannibalisation

WerribeeShare of MYER one Spend

79

• Review Shopping Centre Locations• CBD Locations

Assess Potential Sites

CBD Locations• MAT (Moving Annual Turnover) of the Centre• Quality of Re-Development• Landlord Construction Costs

12 000 2 St $2312,000m2 Store = $23m600 carspaces = $10mTotal = $33m

80


41

Occupancy costs decrease as % to sales

81

Regional Stores

REGIONAL (19)Existing (14) Approved (5)

Albury Dubbo Orange MackayBallarat Erina Toowoomba TownsvilleBendigo Geelong Wagga Shell HarbourCairns Launceston Wollongong TuggerahCharlestown Maroochydore Greenhillsy

82


42

Demographic Comparison

Trade Area Characteristics National Cairns MackayName of Centre N/A Cairns Central CanelandsName of Centre N/A Cairns Central CanelandsMAT of Centre (Total Centre Sales) N/A $352,400,000 $287,000,000*Size of Centre M2 N/A 51,944 39,200Sales Estimates N/A >$35m >$30mEstimated Opening Date N/A Aug-97 Oct-11Estimated population growth (FY2013-2018) 1.2% 1.4% 1.1%Average Per Capita Income $27 174 $26 055 $21 233Average Per Capita Income $27,174 $26,055 $21,233Average Household Income $69,585 $65,368 $57,253DSTM (inc GST)Per Annum Spend per Person (inc GST) $ 4,924 $5,018 $5,214

83Source: MYER One Customer Loyalty, Pitney Bowes, ABS* Not including Myer

Growth Corridor Stores

Growth Corridor (9)Existing (4) Approved (5)Blacktown Fountain GateNorthlakes WatergardensPenrith CoomeraWerribee Joondalup

Plenty Valleyy y

84


43


Trade Area Characteristics National Penrith Fountain Gate

f C Westfield WestfieldName of Centre Westfield Penrith

Westfield Fountain Gate

MAT of Centre (Total Centre Sales) $577,900,000 $701,000,000*Size of Centre M2 88,853 132,133Sales Estimates >$40m >$30mEstimated Opening Date 1972 Aug-12Estimated population growth (FY2009-2013) 1.2% 0.1% 2.5%Average Per Capita Income $27,175 $27,060 $22,779Average Household Income $69,585 $70,995 $69,533DSTM (inc GST)Per Annum Spend per Person (inc GST) $ 4,924 $4,757 $4,993

85Source: MYER One Customer Loyalty, Pitney Bowes, ABS* Not including Myer

Metro Infill Stores

METROPOLITAN INFILL (52)Existing (48) Approved (4)

Adelaide Eastgardens Macquarie RobinaBankstown Eastland Marion WodenBankstown Eastland Marion WodenBelconnen Elizabeth Melbourne Mt GravattBondi Forest Hill Miranda TBCBrisbane Frankston MorleyBrookside Fremantle NorthlandCanberra Garden City Pacific FairCarindale Highpoint ParramattaCarousel Hobart PerthCastle Hill Hornsby RoselandsChadstone Hurstville SouthlandChatswood Indooroopilly SydneyChermside Karrinyup Tea Tree PlazaCollonades Knox Top RydeDandenong Liverpool TuggeranongDoncaster Logan Warringah

86


44


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 78,000Sales Estimates >$45m >$30mEstimated Opening Date Aug-01 Aug-10Estimated population growth (FY2009-2013) 1.2% 3.5% 1.1%Average Per Capita Income $27,175 $36,877 $35,921Average Household Income $69,585 $111,098 $88,396DSTM (inc GST)Per Annum Spend per Person (inc GST) $4,924 $5,638 $5,631

Source: MYER One Customer Loyalty, Pitney Bowes, ABS* Not including Myer87

What does this deliver

• Financials– Sales

Townsville

– EBIT– Benchmarks

• ROFE• Occ %

• Occupancy Costsp y– New Stores– Existing Portfolio

• Landlord ContributionsFountain Gate

88


45

RobinaRobina

89

90


46

91

92


47

Top RydeTop Ryde

93

94


48

Store Design

DemographicsEnvironment Vendor Input & Feedback

STORE DESIGNProcurement

Myer OneCustomer DataService

Profit / Product Mix Space

Optimisation

International benchmarking

Shrinkage

95

Documents

Investor Day – November 2010investor.myer.com.au/DownloadFile.axd?file=/Report/ComNews/... · Investor Day – November 2010 ... An international class retail busi ness providing