From left to right: Jennifer Hawkins, Richard Umbers, Alexis Pead

Myer has opened the first store that definitively showcases its ‘new strategy’, with the department giant’s Warringah store opening doors after a nine month, multi-million dollar redevelopment in the heart of Sydney’s northern beaches.

Occupying a 14,000sqm footprint at the Warringah mall that has undergone a $310 million revamp by landlord, Scentre, Myer are banking on the store appealing to 40,000 local Myer members in the store catchment and the 11 million annual visitors to the shopping centre.

Speaking on a behind the scenes tour of the store for media earlier this week, Richard Umbers, joined by the face of Myer Jennifer Hawkins and store manager, Alexis Pead, said the department store giant has spent more per square metre in developing this store by a significant margin than others.

Though not a flagship location by definition –  typically based in a CBD location and accommodating a broader spectrum of customers –  the store is expected to be immediately among Myer’s most profitable stores. Umbers said Warringah represents the first evidence of the new Myer strategy. “This is the first opportunity where we have had a completely blank canvas to bring all of that under one roof and because we can do a grand reveal on that, it gives us an opportunity to say this is what we actually mean by all the concepts we have been talking about.”

Warringah was identified by Myer as the perfect blueprint for rolling out its ‘new look’, with Umbers asserting the Scentre Groups closing of the store and major refurbishment of the entire mall presented a perfect opportunity for the department store to finally put their money where their mouth is. In contrast to the typical refurbishment of a department store, more evolutionary in nature with single floors or one section of a store being redone bit by bit, the Warringah store represents a complete overhaul.

Productivity has been a key theme of Myer’s focus, with the store exiting the furniture category altogether, and streamlining the merchandising mix in a move aimed at catering to the broader catchment of the vast northern beaches, the rationale being to stop bleeding customers to the city.

“With eight out of 10 of the highest income earning suburbs located on the northern beaches, you have a customer who often works in the city but lives in the northern beaches,” said Pead. “But we don’t want that customer shopping in Westfield’s in the city, we want a special offer for that customer and now we have that, when you live on the peninsula, you now don’t have to leave which is really special.”

The store features the first Aussie roll out of the new Chanel boutique store format, trialed previously only in Hong Kong and Korea – essentially an expanded space that allows customers to walk through the space and test products rather than be served at a single counter.

It also features the largest Sunglass Hut in a Myer store and a design showcase that shows the work of students from the local Tafe.

“The theme is experiential retailing and the idea is that you go into an area, tailored around engaging with the brand and not being presented to,” said Umbers. “Too much density is a problem in premium department store retailing, so it’s more open and the product is better spaced.”

As one expects in today’s retail environment, Myer has heavily  invested in the technology side, demonstrated by click and collect plus several new features including a shoerunner app allowing staff to scan shoes with an iPad for stock checks; and Spotify playlists with different music tailored for each section in the store.

Interestingly, Umbers said online sales are actually in part supported by instore generated sales. “If we haven’t got it, we can have it sent to your home because it instantly dials into our online offer and that becomes an online sale without the customer realising it’s an online sale,” he said. “This is what we mean when we talk about ‘my customer orders’ and the growth we are getting out of online, a lot of the online sales are actually generated by our own team creating the online order behind the scenes using tech.”

Personal shopper room

Myer has also hired last seasons head stylist on The Voice and celebrity stylist for Keira Knightley and Lily Cole, as a fashion consultant for its personal shopper service – a bookings only service free to customers. “We believe service has to be the key differentiator,” said Umbers.

UK department store giant John Lewis also features at an entry point in the store, housing an assortment of homewares. The John Lewis store within a store concept will be rolled out at four more stores in the new year.

“Working with them [John Lewis] on an offer for the Australian market, was all about colour palettes and sizing for Aussie beds,” said Umbers. “We’re getting behind fashionable homes and this will lead the expansion to other stores as well.”

New Myer Warringah is also home to the department store’s first men’s barber and grooming service, Fin Chop & Supply, as well as an instore cafe, The Break, taking inspiration for its menu and design from local beaches.

“Our team has hand picked more than 170 brands including 60 which are new to Warringah,” said Umbers. “We know that local customers will love John Lewis Homewares which makes its exclusive Australian debut, along with brands such as Mecca, Benefit, Topshop Topman, Seed, Industrie, Jack & Jones, and Seafolly.”

“People internally, externally and all of our stakeholders will want to see some evidence that the strategy is bearing fruit, so I’d be foolish to say that we have anything other than expectations of success ,which is why I don’t think it’s a risk – it is a very rational evolution of the business based on the trials and work done over a period of time,” said Umbers.

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