Advanced data analytics to understand customers were a driving force behind a new strategy intended to turn around the fortunes of retailer Myer.
"From this analysis we have identified the necessary actions to make Myer's stores, range and services more attractive to our primary customers who shop at Myer," the retailer's CEO and managing director, Richard Umbers said today.
Last week the company announced that it had created a new role of chief digital and data officer, appointing Mark Cripsey to the position.
Cripsey reports to Umbers and oversees IT, supply chain, online retail, and customer data analytics, including Myer's loyalty program.
At the time a statement from Myer said that Cripsey's appointment reflected its "increasing emphasis on omnichannel retailing and on the importance of customer data at Myer".
The 'New Myer' strategy was unveiled as the retailer today announced a 21.3 per cent drop in net profit after tax to $77.5 million on sales of $3.2 billion, up just 1.7 per cent.
"The New Myer strategy is an energetic revitalisation of Australia’s best-loved retailer. It builds on our proud history and looks to the future with great optimism," Umbers said.
"The New Myer strategy is built on providing a more focused and relevant merchandise offer to serve a more valuable customer and a better shopping experience for everyone who comes to our stores.
"The challenges facing the retail sector are well known, and we understand them deeply. Our strategic response to these issues defines a clear agenda for success."
The new strategy will be underpinned by a $600 million investment over five years.
Under the new strategy, the retailer is targetting average sales growth greater than 3 per cent between 2016 and 2020 and targeting EBITDA growth ahead of sales growth by 2017.
Omnichannel has a key part to play in new strategy, the company said. It will invest $100 million (capex and implementation) in omnichannel, increasing 'Click & Collect' as a proportion of online sales, improving ease of use, fulfilment and online infrastructure.
Myer will also roll out Wi-Fi and 'digital hubs' to more stores. Myer piloted its first digital hub in Paramatta earlier this year.