Myer has long been the big fish when it comes to beauty sales as one of the biggest retailers in the cosmetic space in Australia. Earlier this year, following soaring demand for fragrances and cosmetics, Myer tapped the category as being a major player in its goal of achieving $1 billion a year in online sales.
The department store chain has overcome many of its troubles in recent years, posting record first half FY23 total sales of $1.88 billion – an increase of 24.2 per cent. Profits also doubled over the period to $65 million – an upsurge of 101.4 per cent – to deliver Myer’s strongest net profits since 2014.
John King, CEO of Myer is widely credited as being the powerful driving force behind Myer’s turnaround. The company was struggling following its third profit downgrade in early 2018 when former CEO, Richard Umbers, stepped down.
King was appointed CEO in June 2018 and implemented major strategies such as the customer first plan, which reduced floor space, cut costs and elevated the in-store experience. He also closed unprofitable stores, limited company debt and focused on the growth of online sales. The number of unprofitable brands was trimmed and King and signed up the Country Road Group.
Myer has announced that King will be leaving the top job in the second half of next year after six years at the helm and doubling the department store chain’s profits. He will head to the US to join family and Myer will have over a year to scout for a successor in Australia and overseas.
Prior to joining Myer, King also steered British department store stalwart, House of Fraser, out of the doldrums as he re-positioned the business from 2006 to 2015, boosting its online sales and decreasing debt. The UK native started his career at Sainsbury’s, the leading food and supermarket retailer, and Marks & Spencer, followed by senior executive roles in the manufacturing and wholesale spaces in the UK and the US.
Online sales at Myer have skyrocketed under King’s tenure, ballooning form $208 million in 2018 to $722 million in 2022. Another major triumph was the launch of Myer One, now one of Australia’s top-performing loyalty programs.
Myer One has attracted a new generation of younger shoppers to the company and now boasts 7 million members – an increase of 11.4 per cent from last year. They are strong repeat customers and nearly 4.1 million purchased products and goods over the past 12 months – up by 17.4 per cent year-on-year.
King will be going out on a high as consumers continue to battle cost-of-living increases. But the future looks good for new blood to keep up Myer’s forward momentum.
The board thanks John for his extraordinary contribution to the company and appreciates that his decision to leave in the second half of 2024 is based on being with his family as their health circumstances demand, the company said in a statement.
Myer’s emphasis on increasing its online footprint is set to be a priority. The company has just appointed Lynna Barnard as its new General Manager of E-Commerce, where she will oversee digital end-to-end, including trade operations and online content.
Barnard has nearly 20 years marketing and e-commerce experience, with a strong track record of growing leading businesses across different sectors, including Cotton On, Billabong, Best & Less, National Tiles and Dan Murphy’s.
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