Channelnews : myer bets on loyalty program to drive growth amid retail challenges

Channelnews : myer bets on loyalty program to drive growth amid retail challenges

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Myer is doubling down on its revamped loyalty program as the department store group navigates a challenging retail market marked by operational hurdles and shifting consumer habits. Under new executive chairwoman Olivia Wirth, who joined from Qantas Loyalty last month, Myer plans to expand its Myer One rewards scheme beyond the department store. From August, the program will expand to include recently acquired apparel brands like Just Jeans, Dotti, and Jay Jays, allowing members to earn and spend points across a wider network. By 2027, members could even use points outside the Myer network, mirroring Wirth’s success with the Qantas frequent flyer program. Myer currently boasts 4.6 million active loyalty members who spend nearly three times more than non-members. Wirth says the relaunch will overhaul the program’s tier system to better reward customers and attract younger shoppers, supported by a new shopping app and curated marketplace. The strategy comes as Myer reported modest sales growth in its latest trading update. For the 16 weeks to mid-May, total sales rose 1.9% to $837.2 million, with online sales surging 9% and now accounting for over 20% of total revenue. However, apparel brands recently acquired dragged sales down by 3.9%, and ongoing issues at Myer’s National Distribution Centre in Ravenhall added operational pressure. Wirth acknowledged volatile trading conditions and widespread discounting driven by cautious consumer spending amid cost-of-living pressures and economic uncertainty. She said FY25 represents “a year of transition”, emphasising investments in logistics, leadership, and the integration of new brands. Myer’s refreshed Growth Strategy will be unveiled at an Investor Strategy Day on May 28.

Myer is doubling down on its revamped loyalty program as the department store group navigates a challenging retail market marked by operational hurdles and shifting consumer habits. Under


new executive chairwoman Olivia Wirth, who joined from Qantas Loyalty last month, Myer plans to expand its Myer One rewards scheme beyond the department store. From August, the program will


expand to include recently acquired apparel brands like Just Jeans, Dotti, and Jay Jays, allowing members to earn and spend points across a wider network. By 2027, members could even use


points outside the Myer network, mirroring Wirth’s success with the Qantas frequent flyer program. Myer currently boasts 4.6 million active loyalty members who spend nearly three times more


than non-members. Wirth says the relaunch will overhaul the program’s tier system to better reward customers and attract younger shoppers, supported by a new shopping app and curated


marketplace. The strategy comes as Myer reported modest sales growth in its latest trading update. For the 16 weeks to mid-May, total sales rose 1.9% to $837.2 million, with online sales


surging 9% and now accounting for over 20% of total revenue. However, apparel brands recently acquired dragged sales down by 3.9%, and ongoing issues at Myer’s National Distribution Centre


in Ravenhall added operational pressure. Wirth acknowledged volatile trading conditions and widespread discounting driven by cautious consumer spending amid cost-of-living pressures and


economic uncertainty. She said FY25 represents “a year of transition”, emphasising investments in logistics, leadership, and the integration of new brands. Myer’s refreshed Growth Strategy


will be unveiled at an Investor Strategy Day on May 28.