A lot has been seen in terms of Australia’s ever-changing views about department stores. Be it the biggies, David Jones or Myer Holdings, or the budget-driven players like Kmart, the strategies these stores are implementing to glue more and more customers cannot be ignored after an extent. The focus of these groups’ strategies is centered around brand and quality, diversity in products, and price range of products they offer. Some offer discounts and ‘value for money’ products while some like Target focus on quality over anything else. The retail sharks, David Jones and Myer, also try to follow unique strategies and a recent market analysis and customer survey has revealed the way Myer is looked at, versus customers’ views on David Jones. Let us have a look at these two players in a little detail:
 
David Jones: The group is introducing its new breed of miniature outlets at Sydney’s Barangaroo and plans to roll out the concept in wealthy inner-city suburbs across the nation with Brisbane’s Fortitude Valley up next. The company says the new format would enable to deliver a world class shopping experience within the busy areas where many customers live and work. Although there are challenges looking at aging populations and shopping centres losing traffic and revenue, the group still plans to expand and is also shifting its head quarter. A redevelopment effort worth $200 million in the second half of 2017 has also been planned.
 
Myer Holdings: Myer Holdings has grown at a better pace than rival David Jones in last couple of years. The transformation strategy is working well and Myer has witnessed five quarters of same store sales growth in a row. Comparable store sales growth for Flagship and Premium stores has been up 2.8%. Full year EBITDA growth is expected to be more than the sales growth and there is a good chance to return to profit growth. Myer has made a number of critical investments and its omni-channel sales is increasing by 74% and profit growing at a faster rate. Myer is also taking some conscious steps and is set to close Orange store in January while Wollongong store was to close in October. The outcome of Myer’s transformation journey in terms of FY16 performance is herein below:
 

The group will now accelerate capital investments in priority stores and focus would be on building wanted brands with roll out of a number of brands including TOPSHOP TOPMAN, Industrie, Mimco and the introduction of Saba, Oroton and John Lewis homewares. Although worth-buying, Myer products have been identified as quality driven but more expensive, as per the customer survey.
 
From a retail industry standpoint, Australians are being estimated to spend over $48.1 billion in retail stores up till this year’s Christmas period. This certainly will benefit the department stores overall. In fact, in October, retailers confidence has soared about 20% to be at 124.6 against the All businesses index at 114.6, which is up 4%. With the onset of the Thanksgiving shopping period (under US seasonal tradition), some Australian brands have also started following the tradition and players like Kogan etc. have set themselves for offering discounts. Myer customers are also said to benefit from great deals on diverse range of products (like clothing, cosmetics, and so forth). On a long-term basis, certain challenges might prevail with recent threat coming in from Amazon’s prospective entry on Australian shores. Retailers such as Myer, JB Hi-Fi, and Woolworths could come under competitive pressures. As of now, the 12-month forecasts indicate for good growth from economic standpoint for Australian retailers.

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