Retail store report Essay Example

  • Category:
    Business
  • Document type:
    Assignment
  • Level:
    Undergraduate
  • Page:
    1
  • Words:
    740

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Myer is Australia’s largest department store that retails a wide array of merchandise including footwear, accessories, furniture, books, food, travel goods, home wares, fragrance, electronics as well as clothing for all gender and age. Currently, the retail department store has 67 retail stores all across Australia (Barnes and Hunt 2013). Taking a closer look at how Myer operates, it is clear that the retail store does not put into consideration market segmentation in terms of demographics, psychographics and product usage. What Myer has done is that it has branded itself to appeal not to a specific target market but to the general market. This is evident from its ‘My Store’ brand which is not clear as to who it refers to. When it comes to enticing customers, Myer leverages on its wide product base by offering discounts and sales events. Customer service is however affected in the process given the many stores that the retail store has to operate.

Myer has a loyalty program termed Myer One which currently boasts of more than 5 million members. According to Australian retail industry experts, 70% of all Myer sales are generated from the Myer One loyalty program; the more than 5 million members (Fitzsimmons 2013). The Myer one program enables the retail store to gather important customer information such as preferences and habits. This information forms the basis of all store related decisions for the company. The Myer One program also has a smartphone application as well as digital gift cards, strategies that will see the retail giant implement its omni-channel sales. The Myer one application allows members to easily get rewards, through their smartphones, with every purchase they make (Greenblat 2014). Recently, the retail store management arrived at a strategic decision to exit the lower-margin categories and concentrate solely on exclusive brands. Currently, 20% of all Myer merchandise on sale at, from fashion to electronics to homewares, are high end products from some of the world’s re-known brands. This has enabled Myer to avoid sharing of margins with suppliers as well as avoiding losing sales to competing retailers that have the same products on sale.

The stores operations over the recent past have been geared to prepare it for the online sales. A $100 million merchandise management system, $100 million upgrade of its point-of-sale system as well as $40 million upgrade for its distribution system. These investments have enabled the development of the retail stores new website that cost $9 million and has been built on IBM’s WebSphere platform (Greenblat 2014). The retail store also has in place a multi-million dollar inventory and order management system. This system augments its omni-channel strategy. This system ensures that the ordering process in the retail stores is automated, with orders going directly to the central distribution centre instead of orders being processed at the closest physical retail store (Greenblat 2014). As such, the retail store is able to make orders via a variety of channels such as mobile devices and also make deliveries fast.

Myer’s main focus currently is to create an omni-channel platform that is both inspiring and available to its customers anytime they need to engage with the retail store. Its online business has been growing steadily with the expansion of its online product base becoming its priority. Currently, the retailer’s online store has about 70,000 stock-keeping units thus giving online shoppers a variety to choose from (Myer 2013). The company has also made sure online shopping experience is improved ensuring that its website has more detailed information on the products, address book option, availability of stock by store, ability to check the progress of online orders; various delivery options to choose from as well as multi-delivery option which gives customers the ability to make orders for more than one person. Myer has continued to innovate its operations, with pop-up shops in the CBD, live streaming of fashion launches, visual merchandising displays and in-store shopping events (Myer 2013).

References

Myer. (2013). Our Five Year Plan: Build a leading omni-channel offer. Retrieved from http://myer2013.annual-report.com.au/our-five-point-plan/build-leading-omni-channel-offer

Fitzsimmons, C. (2013). Customer in control: The future of shopping is already here and retailers are battling to keep up. Retrieved from http://www.brw.com.au/p/tech-gadgets/customer_battling_control_keep_future_LpY5jpjs859eMDlpF5vZ3K. (Accessed 25May 2014)

Barnes, S., and Hunt, B. (Ed.). (2013). E-Commerce and V-Business. Oxford: Taylor & Francis.

Greenblat, E. (2014). Australian retailers get serious about online shopping. The Sidney Morning Herald, 22 March. Retrieved from http://www.smh.com.au/business/australian-retailers-get-serious-about-online-shopping-20140321-358l5.html. (25 May 2014).