Myer is investing $600 million in the New Myer strategy, which is expected to deliver improved productivity, a re-energised range, in-store experience and market-leading omni-channel capability through relevant categories, wanted brands and locally tailored offers. The department store predicts the strategy will produce sales growth greater than 3% between 2016 and 2020.

In a statement to the Australian Stock Exchange (ASX), Myer CEO Richard Umbers has described the strategy as a “sustainable business model that will improve the company’s competitive position and return the business to sustainable profit growth in the coming years.”

“Myer’s FY15 result supports the case for our comprehensive change agenda. The decisions we have taken to deliver New Myer will lead to changes to both our store network and operations, resulting in a more productive and efficient footprint.

“We will deliver a sharper and more focused retail offer that attracts more of the customers who represent the highest value to our business. This will be supported by investment in our stores to make them more engaging and productive,” Umbers said.

The New Myer strategy is founded on advanced data analytics of Myer’s customer base and store catchments to build a profile of those customers where there is the greatest opportunity to improve the customer experience and deliver higher sales and profit.

Myer will re-allocate approximately 41,000 square metres of total space from under-performing categories to new and higher performing categories and services.

It will improve customer experiences through roster optimisation, staff training and increased customer feedback. Myer will also elevate visual merchandising, roll out digital hubs and Wi-Fi, and introduce dwell spaces including restaurants, cafes and event spaces.

To oversee implementation of the strategy, a Transformation Office has been established which is responsible for co-ordinating execution and managing change across the business. Key talent from the business has been appointed to form this team.

“New Myer’s strategy represents a new lens on an exceptional collection of retail assets. New Myer is dedicated and faithful to its customers, will be inspiring to shop, in-store and online, and will offer an enviable experience across all channels,” Umbers said.

This article first appeared in Appliance Retailer