Myer flagged the addition of more than 20 Only at Myer Brands (which includes their private label and exclusive brands) in its March half-year report. The private label brands, or MEBs, have helped Myer differentiate its offer from David Jones and Target and have been a key driver of sales and margin growth over the past few years, with sales reaching $638 million, or 20 per cent of group sales, in 2014. Our latest articles and strategies for the post-work life you want. Few people would see Country Road or Witchery as an own brand, yet they too are owned by Woolworths, and the company is ripping the names out of Myer so DJs can say its the only department store hosting the fashion names. The majority of the brands will be international labels including Selected Femme, Selected Homme, Oasis, Warehouse and Twisted Tailor. They are globally positioned, they have a great design team and great scale we think we're well positioned with those brands as we move forward," Mr Robinson said. People are generally tight on spending but on Black Friday they do come out, Mr King said in an analyst call on Thursday. Brands the department stores either owned or controlled themselves could help stem the tide. It has 67 stores in prime retail locations across Australia. Get The New Daily free every morning and evening. Investment news, stock ideas, and more, straight to your inbox. Advanced Search. Ms Hurley said improvements in the company's e-commerce systems mean Myer has also learnt which brands perform well in certain geographic zones, and can stock physical stores accordingly. Ms Do said the shift towards more exclusive brands will mean less overlap between the two and other retailers, giving each retailer its own clear product offering. In the future there will be less brands you know and more brands youve never heard of. Sebastian Bowen, News Corporation (ASX: NWS) might be facing some existential threats from its American cousins over the riots on 6 January. Nationwide News Pty Ltd 2023. Rhys Brock, The Aroa (ASX:ARX) share price has surged 60% since the Polynovo (ASX: PNV) competitor listed on the ASX in July., January 29, 2021 | "It's very similar to what David Jones went through and our brands in David Jones have had fantastic growth since then.". Click here now to find out the names, stock symbols, and full research for our three favourite income ideas, all completely free! "They have a lot of brands in their stable that just don't resonate with their customers," he said. Myer has spent over $50 million purchasing a number of brands outright including Trent Nathan and Sass and Bide. There are about 40 new brands in womenswear, spread across categories including daywear, evening, active and curve, and about 30 in menswear. you'll receive an exclusive Myer birthday discount of $15-$30. Shares in Myer are up 14.63 per cent to $0.47 per share at . Were working to restore it. David Jones has snared exclusive department store rights to the Sportscraft, Saba and JAG brands after signing a partnership agreement with Australian apparel group APG&CO. Given these brands offer much better margins than national brands, or Myer's . Myer has a range of house brands across homewares, women's apparel, men's apparel and children's apparel. In March, Myer reported a small underlying jump in profits to $41.2 million. "Piper is a good private label brand but we may have extended it into too many sub-categories [and] the same could be said of Basque.". Creating a Framework for Win-Win Partnerships Between Nonprofits and Corporate America March 22, 2023. But other categories, well, he wasnt so sure. You can head into Myer and David Jones and come out smelling of Chanel, tottering on Louboutins and piled high with Polo by Ralph Lauren. However, what is considered a private label is becoming a grey area. The loss of the Sportscraft brand comes as Myer fills gaps in its range after losing Country Road and sister brands Mimco and Politix to David Jones. In David Jones, Studio W and Re: are brands owned by the firm's ultimate owner, South Africa's Woolworths Holdings. The retailer owns or stocks 66 MEBs after buying several distressed brands, such as Trent Nathan and Charlie Brown, and developing in-house labels. Name Generator. Neutral Boys. Register, Join the conversation, you are commenting as Logout. Apple products were taken off Myers shelves last May, while the company exited the Country Road brand in the first quarter of FY20. "It will be interesting to see the impact on their business we were a significant player, particularly with Mimco and Politix the brands were diminishing over time," he said. More new brands set to feature nationwide are Paper London, Alice & Olivia, Torrance, Proenza Schouler White Label, Karl Largerfeld Paris, Rotate Birger Christensen, Aeryn and Fiorucci. Total sales of MEBs increased by 1.9% to $527.2 million, now representing 17.6% of total sales as a result of improved merchandise ' AA AM 2019 2019 2019. Categories. Nonetheless, IBISWorlds Ms Do said since taking over DJs in 2014, Woolworths had moved away from the previous house of brands strategy. document.getElementById( "ak_js_15" ).setAttribute( "value", ( new Date() ).getTime() ); Download the full report to learn about the 12 strategies that will show you how you can prepare your business to survive and thrive through a recession. The battle between David Jones and Myer for exclusive brands shows no signs of easing even as the department store chains chase consumers at different ends of the market. Its the Aldi effect. Many of the brands being offered by department stores can just as easily be purchased from high street specialty stores, Dr Grimmer said, and thats a problem because the specialty stores offer a better customer experience. Mr King said improvements in womenswear and exclusive brands were underway but would not flow through until FY21. However, Myer's new chief executive Richard Umbers and deputy chief executive and chief merchandise and marketing officer Daniel Bracken believe the private label range has grown too fast and occupies too much space in Myer's stores. ", Women's: Veronica Beard, Ba&sh, Paper London, Lorna Jane, Warehouse, Forever New Curve, Men's: Nicce London, Dr Denim, Reebok, Mr Simple. It also helps drive foot traffic, which can boost cross sales., N O ONES GOING TO BUY A MYER-BRAND SUIT. Sales of Myer Exclusive Brands rose 1.9 per cent to $527.2 million, and now represent 17.6 per cent of total sales. As OrotonGroup (ASX: ORL) and Premier Investments (ASX: PMV) via their Smiggle brand have learned, there are salivating profits to be made. Follow the topics, people and companies that matter to you. Myer deputy chief executive Daniel Bracken is culling private label and national brands to clear floor space for new labels. Myer has also shuttered its clearance floor concept and is targeting another 73,000 square metres of reduced floor space in coming years. Our stores pride themselves on exciting visual merchandising displays, and a distinctive range of store within store concepts from big brands like Nespresso, KitchenAid, Dyson and more. "We will invest to grow Myer exclusive brands. "We see good growth for those brands in this market. document.getElementById( "ak_js_13" ).setAttribute( "value", ( new Date() ).getTime() ); Fill out the form below and click the 'Download Now' button to read the full report on 7 STRATEGIES BEHIND THE WORLD'S MOST SUCCESSFUL DESTINATION BRANDS. However, what is considered a private label is becoming a grey area. Add articles to your saved list and come back to them any time. Gazal Corp chief executive Patrick Robinson welcomed Myer's new strategy, saying it represented a growth opportunity for some of the brands in Gazal's joint venture with PVH Inc, especially Calvin Klein White Label. While own brand is not new in department stores, they have taken longer to double down on private label compared with supermarkets. Visibly revitalise your skin with the ultimate golden Soft Cream collection, to boost skin luminosity and radiance, lift and firm, and target signs of ageing. Restructuring, redundancies and brand losses hit Myer. The company has also warned the tough times will continue as the coronavirus outbreak exacerbates the pain of an already soft consumer environment. Founded in 1993 by brothers Tom and David Gardner, The Motley Fool helps millions of people attain financial freedom through our website, podcasts, books, newspaper column, radio show and premium investing services. This includes Woolworths Country Road Group brands, she said. Ms Hurley explained that Mr King's "back to basics" mantra for improving Myer's fortunes didn't equate to "cheap, its not volume value. But with growth in department stores basically non-existent, margins and profits shrinking and wary consumers closing their wallets, the two venerable companies are taking drastic action. Going forward, theyre expected to continue increasing their private label brands, which will also help with things like purchasing costs.. Myer chief executive and managing director John King put the improvement down partially to the businesss renewed focus on exclusive brands (private label and otherwise). Girls. Boy Names Ending in -er . The big changes coming to Myer and David Jones. There was an error submitting the form. David Jones does not stipulate the total number of brands in 2011 apart from adding 90 brands for a "Home of Brands" strategy supported by the strategy to "offer the . "Myer's 2019 half-year results saw sales of Myer Exclusive Brands (MEBs) rise by 3.7 percent to $292.2 million, which also assisted the company's profit margins. In the short term, theyre expected to still struggle a bit, she said. Unusual. But while fashion might be ripe for a department store own-brand takeover, there are several categories where brands reign supreme and likely will do for some time. Australian fashion designers are not the only losers in Myer's brand cull. document.getElementById( "ak_js_3" ).setAttribute( "value", ( new Date() ).getTime() ); document.getElementById( "ak_js_4" ).setAttribute( "value", ( new Date() ).getTime() ); document.getElementById( "ak_js_5" ).setAttribute( "value", ( new Date() ).getTime() ); document.getElementById( "ak_js_6" ).setAttribute( "value", ( new Date() ).getTime() ); Fill out the form below and click the 'Download Now' button to read the full report on MARKETING TO MILLENNIALS. If theres one thing upscale department stores are known for its big-name brands. As a result, the company is planning to extend its private-label range to include footwear and accessories to . Secondly, the department store is going to focus more heavily on its 'Only at Myer' branded category. Were sorry, this feature is currently unavailable. Under the terms of the deal, the ASX-listed department . The company has foreshadowed another dip in sales to come in the future thanks to the exit of brands from the store. The company booked a net $15.2 million in first-half costs associated with brand exits, clearance floor closures, and redundancy payouts after the company cut 35 head office staff in January. By continuing to use our site you are agreeing to our. The Motley Fool launched its Australian presence in 2011, and since then has grown to reach over 1 million Australians. Australians are set to spend $925 million on mothers this year. The Hornsby store closed in January while refurbishments have commenced at the Myer stores in Cairns and Karrinyup, underpinned by significant landlord contributions. The loss of the Sportscraft brand comes as Myer fills gaps in its range after losing Country Road and sister brands Mimco and Politix to David Jones. The homewares brand Vue involved design, photography and artwork for over 300 SKUs across 30 product categories, produced in 12 countries. Myer is one of more than 70 Australian retailers, suppliers and vendors who are members of the RFID Coalition, formed almost three years ago by GS1 Australia to accelerate the take-up of the. Myer is set to continue to review its fashion range in a bid to stay at the forefront of the worlds fashion trends, according to Mr Winstanley. "We will invest to grow Myer exclusive brands, with broader assortments and extensions to additional categories. 4 Letter Boy Names. Myer is undergoing the biggest pivot in four years by introducing new brands and honing its customer focus in a bid to resurrect its fashion business. While they still face some headwinds, better days could lie ahead and their dividend yields offer added appeal. Copyright 2023 The New Daily. The department store has acknowledged that the mid-2010s strategy of chasing high-spending, aspirational customers had not worked, and has been re-focusing on attracting "traditional" Gen X consumers who love fashion but also demand value. In Myer, own brands include Basque, Milkshake and Vue. Myer and David Jones are also busily signing up exclusive brands. WELCOME TO MYER PROPERTIES. He was reluctant to offer a long-term outlook but said the virus was a potential cashflow opportunity in the short term. There was an error submitting the form. Theyre trying to minimise brands that are sold in both stores, and this is just so they dont cannibalise their own sales and lessen the competition between the two, Ms Do said. Myer has spent over $50 million purchasing a number of brands outright including Trent Nathan and Sass and Bide. Mr King said the company would continue to push online sales as the coronavirus threatened to keep people at home. Were sorry, this feature is currently unavailable. More Myer exclusive brands are joining the department store including Selected Femme, Selected Homme, Twisted Tailor, Acqua di Parma, Girls on Film, and Jack London.
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