Myer, Time To Take Off The Rear-vision Mirrors

Myer, Time To Take Off The Rear-vision Mirrors
B&T Magazine
By B&T Magazine
SHARE
THIS



In this guest column, behavioural analyst and group CEO of The Brand Institute of Australia, Karl Treacher (pictured below), runs his expert eye over beleaguered retailer Myer and, he says, if things don’t change and fast, it’ll be epitaphs next…

Without knowing it, humans default to replicating behaviour that served us in the past. It’s like a built-in safety device that works in so many cases. Myer, and the way it needs to be led is not one of those cases. In fact, by looking back to move forward, Myer will come to a complete stop.

Screen Shot 2017-10-25 at 12.17.24 pm

Myer has struggled for a long time to find a brand position that is worthy, and that marries with the established brand image of yesteryear. And that’s just it, we’re not in yesteryear (somewhat obviously), we’re in an age that swiftly and often publicly executes brands that fail to remain relevant day in day out. With the latest high-profile media spat involving major shareholder Solomon Lew having its way with Myer’s faltering reputation, the business and brand are approaching a crucial fork in the road.

The upcoming strategy update address by CEO Richard Umbers needs to be something straight out of Steve Jobs’ magic bag. The approach to date, as part of Myer’s five-year strategy is far too conventional, relying on proven, conventional retailing practices that worked…in the past. Proven in the past. The genius of Jobs or any visionary leader is in building strategy that speaks to future needs, not stated observed needs of today – as these all too quickly become hygiene tickets to play.

When it comes to Myer’s reputation, things aren’t great. So many attributes of their reputation are currently in question – not the least being their financial performance, as highlighted by their major shareholder demanding Q1 reporting immediately.

Of the many roads facing the Myer board, there is only one that will begin to rescue the brand and make in-roads into repairing its reputation. Forget the past. There is nothing that we’ve researched across the Australian retail landscape that suggests Myer can continue to operate using existing business and customer experience principles. That includes directional assets used over the past two years, which have shown Myer’s hand regarding it’s lack lustre penchant for disruptive innovation…and disruptive innovation is exactly what it needs.

However before Myer begins engaging in demonstrative change, it needs to do one thing first. The thing it’s needed to do for over 15 years – find a position and own it. We audited Myer in 2003 and the issues it had then remain today. Australian retail doesn’t have room for two large department stores occupying the same (or very similar) market position.

At least not enough room for them both to do well, and satisfy shareholder expectations. Before the internet sure, now – no way and we all know this. However Myer’s behaviour and actions suggest it’s a slow learner. DJ’s has won that battle; it owns it. Interestingly (and importantly for the Myer board), there is a market position for Myer that will work. A position that would rescue them, but from what we see at present it may never be realised.

The writing is clearly on the wall for Myer should it remain committed to it’s current strategy and rate of change. What happens with regard to the ongoing feud with Solomon Lew and Premier, Myer’s major investor will be interesting to watch but not the main event.

The main event will be one of two things : (i) the extraordinary story of Myer and how it evolved into the hearts and minds of its diverse customer base (and Australians in general) or (ii) the great disappearing act of one of Australia’s iconic retail brands and a story of risk-led transformation that failed to move this iconic brand into the current day success it could and needs to be.

Please login with linkedin to comment

    Latest comments
  • jennifer10 3 years ago

    Fear of Change v. Fear of Failure! Change in business is non-negotiable, inevitable and relentless and for those who do not change…. will FAIL simple as that!. As a Global Change Agent I’m damn frustrated at this loved retail giant doing the same old same old! Im also an ex employee from mid 90’s and had the same view then as Karl does now! How can Myer not see this, are you all frightened to take the risk … to position yourselves and own your space? Change, fear of change and denial of change.. Kodak did that and look what happened to them. Face and Embrace it Myer. @jen_trethewey @bandt @myer

David Jones Karl Treacher Myer The Brand Institute of Australia

Latest News

Adgile Doubles-Down On Australia Growth With Team Expansion
  • Advertising

Adgile Doubles-Down On Australia Growth With Team Expansion

Following on from the appointment of Paul Evans as its first Global CEO, Adgile Media has set about expanding and developing its talent base, in order to support and drive growth within the Australian market. Stu Carr joins as Adgile’s new Director of Customer Insights, where he will support clients with their data and analytics […]

Val Morgan Digital & Fandom Team Up With Adidas For New Campaign Featuring Esports Star
  • Campaigns

Val Morgan Digital & Fandom Team Up With Adidas For New Campaign Featuring Esports Star

Partners of Val Morgan Digital, Fandom, the largest entertainment fan site in the world, have this month teamed up with mega brand, adidas to build hype around the release of their new X9000 range. The multi-faceted campaign included a mix of written & video content that tapped into the core pillars of style, tech, and […]

Akcelo Expands Data Strategy And Martech Capabilities With Appointment Of Senior Marketer Anne Ngo
  • Advertising

Akcelo Expands Data Strategy And Martech Capabilities With Appointment Of Senior Marketer Anne Ngo

Brand experience and innovation company Akcelo has today announced the latest senior addition to its growing team, appointing highly experienced marketer Anne Ngo as martech and customer strategy director to lead and grow the practice. Ngo will help Akcelo clients grow their customer marketing and martech maturity by leveraging her deep understanding of the challenges […]

7-Eleven Partners With Adobe And Microsoft To Accelerate Digital Strategy
  • Marketing

7-Eleven Partners With Adobe And Microsoft To Accelerate Digital Strategy

7-Eleven has entered strategic partnerships with Adobe and Microsoft in what is set to accelerate the company’s ambitious digital strategy.  With transformation works well underway, 7-Eleven’s digital plans signal a significant step forward for Australia’s leading convenience retailer.  7-Eleven General Manager of Strategy and Technology Stephen Eyears (pictured) said the company sought to deliver more agile innovation in order to meet customer needs across […]

Anchor Dairy Launches Christmas Appeal For NZ Food Network Via Pead
  • Campaigns

Anchor Dairy Launches Christmas Appeal For NZ Food Network Via Pead

New Zealand’s Anchor Dairy has switched strategies for its 2020 Christmas campaign, with the company this year drawing attention to the need to give during the festive season. The Fonterra-owned company is encouraging Kiwis to fundraise for the New Zealand Food Network, following the release of research that showed one in five people risk going […]

Victorians Told To Take Advantage Of Energy Reforms In New Campaign, Via Icon Agency
  • Campaigns

Victorians Told To Take Advantage Of Energy Reforms In New Campaign, Via Icon Agency

The ‘It’s Your Energy’ campaign, delivered via Icon Agency, encourages Victorians to take advantage of recent energy reforms and ensure they’re getting the best deal possible. Essential Services Commission, the regulatory body for Victorian energy and gas, water, local government, and transport sectors, has engaged Icon Agency to develop an integrated communications campaign to help […]

MJZ’s Juan Cabral Joins FINCH, Colenso BBDO On ‘NRMA Sleeper’ Campaign
  • Campaigns

MJZ’s Juan Cabral Joins FINCH, Colenso BBDO On ‘NRMA Sleeper’ Campaign

In the insurance company’s latest campaign, NRMA Sleeper depicts a road trip, like any other, except everyone in the car is asleep, even the driver. Yet they arrive unscathed. According to production company FINCH, which is behind the work, the spot dreams up a world where cars drive themselves to remind us that until they […]

Charity Bailey’s Day Launches ‘The Big-Hearted Bear’ Campaign Featuring Livinia Nixon Via Noisy Beast
  • Media

Charity Bailey’s Day Launches ‘The Big-Hearted Bear’ Campaign Featuring Livinia Nixon Via Noisy Beast

Children’s cancer charity, Bailey’s Day, has teamed up with full-service international communications agency Noisy Beast to launch ‘The Big-Hearted Bear’ campaign, voiced by Channel 9’s Livinia Nixon. Each year, Bailey’s Day hosts a charity golf day, auction and luncheon to raise funds for children’s cancer research at Monash Children’s Hospital, but with the COVID-19 pandemic, […]