What: Myer CEO talks about rising theft and customer behaviour in Australia.

Why it is important: It is no secret that Australian department stores are struggling. The fact that John King plans to leave in 2024 opens many speculations about the future of the business.

In FY24's early weeks, Myer's sales fell by 1.9%, but CEO John King remained optimistic about the growth since the pandemic, highlighting its focus on omnichannel retailing. The success was attributed to the combined in-store and online customer experience, with Myer One being a significant driver. King emphasized that customers spending across multiple channels tend to spend more. In FY23, Myer reported a 12.5% YoY sales increase to $2.1 billion and an 18% YoY net profit increase to $45.6 million. Amidst concerns of sustaining these figures, especially with potential capital injection into rival David Jones by new owner Anchorage Capital, King pointed to Myer's diverse product pricing strategy. King acknowledged a sales decline in the last quarter of FY23 and early FY24 but expects more clarity post the holiday season. Myer plans to enhance the shopping experience through tech investments and a new national distribution center. Retail theft, accounting for 1.8% of Myer's FY23 sales (~$60 million), remains a challenge. King intends to resign as CEO in 2024, raising questions about the company's future direction, especially with Solomon Lew's increased stakes in Myer and his known intent to overhaul the Myer board. King acknowledged Lew's increased interest as a sign of support for the company.

Australia’s Myer CEO’s interview