Business Research Report: Analysis of Myer Stores' Performance

This report presents a comprehensive business research analysis of Myer Stores, a major Australian department store chain. It begins with an executive summary and a detailed literature review, exploring background information on customer loyalty, market competition, and economic factors affecting the Australian fashion industry. The report identifies Myer's business problems, including declining sales, financial losses, and challenges in maintaining customer loyalty. It investigates strategies for increasing competition, analyzes the strengths and weaknesses of competitors, and examines the impact of various brands on Myer's sales. The research methodology, including aim, objectives, research questions, and design, is clearly outlined, along with a project schedule and references. The study employs qualitative and secondary data collection methods. The report also addresses research gaps, limitations, and ethical considerations, providing a thorough examination of Myer's business environment and performance.

Running head: MYER STORES
Business Research for Hoteliers
(Myer Stores)
Name of the Student
Name of the University
Author’s Note

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Executive Summary
This report has been focused on the business problems of Myer Stores in Australia. This report
has been based on the presentation of assignment one based on Myer Stores. This report contains
business problem of the Myer Stores and identify issues in the company. The aim of the research
and objectives have been discussed in the research. The methodology followed in the research
has been discussed. This research has used qualitative and secondary approach for data
collection process. The research gaps and limitations have been provided in the study. The
research has followed all ethical consideration related to the study. A proper timeline and Gantt
chart have been provided in the research.

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Table of Contents
SECTION 1.....................................................................................................................................5
1. Literature Review.......................................................................................................................5
1.1 Background............................................................................................................................5
Reasons by which customer loyalty can be returned...................................................................5
Strategies can be used for increasing competition in the market.................................................6
Strengths and Weaknesses of competition..................................................................................6
Brands that might help in increasing sales of Myer Stores.......................................................10
Economic and social factors affecting Australian fashion industry..........................................12
1.2 Assessment..........................................................................................................................14
SECTION 2...................................................................................................................................18
2.1 Aim, Objective and Research Questions.............................................................................18
2.2 Approach..............................................................................................................................19
2.3 Research design...................................................................................................................19
2.3.1 Research Technique..........................................................................................................19
2.3.2 Population.........................................................................................................................20
2.3.3 Sampling Design...............................................................................................................20
2.3.4 Implementation plan.........................................................................................................21
2.3.5 Suggested Questions.........................................................................................................21
2.4 Project Schedule......................................................................................................................22

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References......................................................................................................................................25

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SECTION 1
1. Literature Review
1.1 Background
Business organizations have been facing a lot of problems at different field. There have
been various scenarios in which business organizations have been facing problems related to
their operations and sales. Myer has been committed for responsible business growth and
integrating environmental, social and ethical considerations during operations (Payne, 2014).
Their strategy aims at maximizing positive outcomes and influences by our stakeholders for
integrating all aspects of sustainability. Sales of products have been increased by 1.7 percent to
$3,195.6 million with opening of new stores and online businesses (Myerstore.com, 2018). Myer
stores have been facing loss of about $500 million in the year 2018. Myer’s sales in the financial
year were down 3.2 per cent to $3.1 billion, leading to a loss of $486 million compared to the
previous financial year. Myer's total online sales were $239.4 million, including $30.8 million
via in-store iPads, sass & bide and Marcs and David Lawrence online sales and Myer Market.
Operating gross profit declined by 2.9 per cent to $1.18 billion. No final dividend will be paid.
Reasons by which customer loyalty can be returned
Business organizations have been facing different types of issues in their operations in
the market. There has been fluctuation in the graph of the consumer behavior for a particular
company over the years (Gardetti & Torres, 2017). Consumer behavior has been a study of how
consumers are related to the company’s products and services offered in the market. The
behavior possessed by customers in order to purchase, sell and make decision for purchasing
include under this customer behavior. Decision making criteria of the customer depends on the

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brand value and quality of products. There have been different type of customers in the market
including loyal customers and temporary customers. Loyal customers are customers who are
connected with products and services of the company repeatedly (Henninger et al., 2015).
Marketing of products and services of the companies have been an important criteria for
acknowledging customers about products and services of companies.
Strategies can be used for increasing competition in the market
The overall marketing concept depends on three basic orientations including customer
orientation, customer satisfaction and common goal. Marketing depends in particular plan. A
marketing plan include several elements such as marketing objectives, strategies, mission
statements and assumptions (Dobele et al., 2014). The marketing plan involves the process that
business analyze environment and its capabilities. Marketing strategy has been a fundamental
method that helps in creating objectives of marketing. The use of marketing strategies have been
helping in maintaining keen approach to maintenance of sales of company in the market (Black
et al., 2014). Customer behavior has been depending in the amount of product and services of
the companies. The production concept has been depended on the customer prefers products are
available and affordable. The selling concept has been the drive of marketing using all other
elements in sales.
Strengths and Weaknesses of competition
The current state of the retail sector has been surveyed in the annual report that it has
been in a fragile customer confidence towards companies in the market. Over past six months,
there has been decline in the confidence of customer towards highly competitive market with
high discounting offers (White, Nielsen & Valentini, 2017). Customers have been looking for
quality and discount in products. Households have been saving more to their income. The

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household savings ratio has been around 10 percent. Sales of the company across different
categories have been impacted by deflation in price as a result in discounting in competitive
advantage. Extreme weather conditions have been affected sales in the Australia in past six
months (White, Nielsen & Valentini, 2017). The sales of companies have been affected by the
floods, hurricanes and other natural disasters in the country.
Figure 1: Competition in the market
(Source: Craik, 2017)
Myer store have been flourishing in the Australia with increase in its sales in the market.
However, there has been several problems detected in the organization. It has been reported that
$496 million annual loss to the company (Craik, 2017). The company has been listed in the
Australian Share Market since 2009 and has been facing loss for first time. The last annual profit
of the Myer store has been recorded as 1.2 million in the financial year of 2016-2017. There has

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been decline in the earning margin from 3.33 percent to 1.79 percent in last financial year
(Myerstore.com, 2018).
Figure 1: Consumer Confidence and Retail sales
(Source: Hijazi & Strannhage, 2016)
There has been significant loss in the culture of retail sector in Australia as over 13,00 shopping
centers has been closed down due to decrease in sales. The quality of the products and services
of companies have been not satisfying customer needs in the market. The customers are not
satisfied with services provided by companies in Australia. Australian retailers have been slow in
their uptake of e-commerce even after using modern technologies (Smith & Finn, 2015). It has
been the largest demographic of customer of Myer and has impended online acceptance. The
website of the company has not been user friendly. The current performance has been
represented by graph as it shows decline in share price of Myer. The below graph shows that
share price has been halved between February and April.

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Figure 2: Myer share price
(Source: Vithayasrichareon, Riesz & MacGill, 2015)

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Figure 3: Department Stores sales in 8 years trend
(Source: Binotto & Payne, 2017)
Brands that might help in increasing sales of Myer Stores
The change in number of brands associated with Myer stores have been decreasing
continuously. This has been a major concern for the board of directors of the Myer Stores.
Various meetings and sessions have been initiated to discuss this problem along with
stakeholders of the company (Ye & Lau, 2018). The accounting system of the company has been
gone down. This have created mismatch of the financial accounts in the company. The behavior
possessed by customers in order to purchase, sell and make decision for purchasing include
under this customer behavior. There have been different type of customers in the market
including loyal customers and temporary customers. In coming years, various brands that were
available in Myer stores will have been taken out of nationalized stores of Myer stores. There

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have been various brands in the Australia that have been doing business at profit margin. These
brands include ALDI, Woolsworth, Nike, Reebok, Jac and Jack, Maticevski and Zimmerman.
David Jones has found a small increase of 0.6 percent in comparable sales in last six weeks of
the graph. Department store sales has not recorded high growth. However, there has been slightly
increase in sales in last eight years than in 2010.
Figure 4: Companies having high brand value
(Source: Valaei & Nikhashemi, 2017)
Myer has been criticized for recruiting few staffs for helping customers. The customer
relationship department of the company has been low that has been creating issues in customer
relationships (Valaei & Nikhashemi, 2017). Decision making criteria of the customer depends on
the brand value and quality of products. Due to this, customer satisfaction level has been going
down. Therefore, the company has not been able to satisfy needs and expectations of customers

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in the market. Therefore, customers are not availing proper services by the companies.
Therefore, different brands have been cancelling their contracts with the Myer Stores.
Figure 5: Fashion industry in Australia
(Source: Smith & Finn, 2015)
Economic and social factors affecting Australian fashion industry
Fashion has always been an important phenomenon in the human life. Fashion has been
related to social and economic influences of human being. Australian fashion industry has been
also affected by the socio-economic factors in the environment. The cultural factors in Australia
has been affecting the fashion industry in the market. The change in the thinking and civilization
of Australia have been continuously changing with time period (Smith & Finn, 2015).
Therefore, fashion industry need to be changed with respect to change in civilization. The
fashion trends in the Australia has been continuously changing with time. There have been