What: Myer Group is restructuring its sourcing, distribution, and store operations to cut costs and drive sustainable growth following its acquisition of Apparel Brands.

Why it is important: Myer’s strategy highlights the challenges and opportunities of integrating new brands and streamlining operations to remain competitive in a shifting retail landscape.

After posting a $211.2 million statutory loss for FY25, Myer Group is embarking on a significant transformation under executive chair Olivia Wirth. The company’s new value creation program targets cost reduction and margin improvement through three main levers: direct sourcing, simplified distribution, and operational efficiency. By moving away from its complex sourcing network in Hong Kong and establishing direct relationships with manufacturers, Myer aims to lower procurement costs and enhance supply chain agility. The integration of Apparel Brands, acquired from Premier Investments, is expected to provide scale benefits and greater leverage in global sourcing negotiations. In parallel, Myer is streamlining its distribution network to reduce fulfilment costs and accelerate product flow, while operational improvements in store management and staff flexibility are intended to offset inflationary pressures. Industry experts note that while these measures are essential for margin recovery, true profitability will depend on Myer’s ability to balance cost savings with sustained revenue growth amid ongoing market challenges.

IADS Notes: As highlighted in Inside Retail (September 2024), Myer’s transformation strategy has focused on optimising its physical store network and pursuing strategic partnerships, including the merger with Apparel Brands. The executive shake-up reported by Reuters (March 2025) and the creation of new leadership roles underscore Myer’s commitment to operational efficiency and digital innovation. Inside Retail’s February 2025 analysis confirms the broader sector trend toward consolidation and omnichannel innovation, while the January 2025 article in Inside Retail emphasises the complexities and risks associated with integrating diverse brands, such as operational inefficiency and potential brand cannibalisation.

How Myer Group is cutting costs to improve margin