Myer will shed around 50 jobs and shakeup its executive management team as part of a restructure that will support it in strengthening its e-commerce business, so it can compete with disruptors such as Amazon.
On Thursday, department chain Myer announced a wave of redundancies and it will vacate an entire floor of its Melbourne headquarters in order to resurrect its business and attract more sales and customers – the big shift in focus for Myer will be towards e-commerce.
Myer says its major management restructure is in support of creating a business that: “is more integrated across channels and better equipped to capitalise on the structural shifts occurring across the retail environment,” according to a company statement.
As part of its executive shakeup, Mark Cripsey, the company’s chief digital and data officer, has been promoted to chief operating officer, effective immediately – signifying Myer’s greater focus on e-commerce.
“This newly created role reflects the importance of digital and data across the whole business, and the need for us to seamlessly integrate our physical and online offers,” said Myer chief executive officer, Richard Umbers.
Cripsey’s new responsibilities will incorporate the Myer store network, the online business as well as the areas of marketing and Myer One (its rewards program) including data analytics.
“Under Mark’s leadership, Myer will be better placed to anticipate and respond to the structural shifts occurring in retail and capitalise on the opportunities that exist in improving the use of our customer data,” said Umbers.
In addition to this, Myer has appointed a new chief financial officer – Nigel Chadwick will replace Grant Davenport who had only been in the role for just two and a half years. Chadwick, and ex Spotless, BHP and Telstra executive will join Myer on 29th January.
The announcement comes after Myer released its concerning sales figures in the lead-up to Christmas. The retailer still hasn’t announced its final sales figures for December, but its statement yesterday could allude to more lacklustre performance over the period.
“Recent trading conditions have been tough, in part as a result of reduced traffic to physical stores,” said Umbers yesterday. “It is with sadness that we farewell a number of team members as a result of these changes. I would like to thank them for their contribution and years of commitment to Myer.”
As a result of a number of departures across the support office, a further floor will be exited bringing the total vacated area to 4.5 floors or over 40 percent of the space since September 2015.
“Today’s announcement reflects a continued focus by Richard and his team to ensure that Myer is better placed to capitalise on the rapid digitisation in retail, while maintaining a focus on efficiency and productivity,” added Myer chairman Garry Hounsell. “Myer is over two years into its five-year turnaround and this announcement reflects the board and management’s heightened sense of urgency in delivering shareholder value.”