Myer is gearing up to relaunch its popular Myer One loyalty card later this year, following a historic shareholder vote to merge the department store giant with fashion brands from Solomon Lew’s Premier Investments empire. The merger will create a retail powerhouse boasting 783 outlets and annual sales of $4 billion.
The expanded Myer umbrella will include household names like Just Jeans, Jay Jays, Dotti, Portmans, and Jacqui E, alongside its department stores. This strategic move aims to revitalise Myer’s brand and strengthen its foothold in Australia’s competitive retail market.
One of the merger’s key benefits is the opportunity to expand Myer’s Myer One loyalty program across its new portfolio. With 10.4 million members, the program will soon offer shoppers the chance to earn and redeem points not only in Myer stores but also at the newly integrated fashion brands.
Executive chairwoman Olivia Wirth, who spearheaded Qantas’ successful Frequent Flyer program until 2024, believes loyalty and data will play pivotal roles in Myer’s growth strategy. “What that means is that our customers will earn points, whether that’s online or in store, or shopping at Myer or the apparel brands,” Wirth told the Australian Financial Review.
“It gives us access to really important data around how our consumers behave, and will give us an insight into products that sell.”
As part of the merger, Solomon Lew, the 79-year-old retail magnate, becomes Myer’s largest shareholder, with a 27 per cent stake in the group. Lew, elated by the outcome, will return to Myer’s board after a two-decade hiatus.
Premier’s shareholders voted overwhelmingly in favour of merging its Apparel Brands with Myer, receiving shares in the enlarged company. Meanwhile, Premier will focus on its high-growth businesses, Peter Alexander and Smiggle, as its apparel brands have matured and are no longer experiencing rapid growth.
The merger follows a challenging retail period marked by weak post-Christmas sales. Wirth acknowledged the hurdles facing the retail sector, emphasising the importance of innovation to navigate economic pressures.
“It demonstrates why it is crucial for retailers to continually innovate and evolve to strengthen and grow their businesses,” she said.
The announcement seems to have reinvigorated investor confidence, with Myer shares surging 6 per cent to 96¢ following the vote.
