Myer has extended its contract with CEO Bernie Brookes for a further two years, against a backdrop of falling sales and questions over customer service standards.
Chairman Howard McDonald said the Myer board was confident about Brookes ability to lead Myer in “challenging” economic times, avoiding commenting on issues surrounding Myer management and service complaints in recent months.
Brookes conceded in a recent media interview that poor customer service was the department store giant's “Achillies heel” and that he would pour $25 million of the store's dwindling budget into store-by-store staff training.
However national secretary of the Shop, Distributive and Allied Employees Association, Joe DeBruyn said recently that staff “training” was not the issue.
“We get regular complaints about under-staffing, particularly in Myer stores,” DeBruyn stated.
Myer reported a $13.5 million sales drop in its last quarter, with Brookes citing “more discerning” consumers as the reason for the slump. Myer's 2011 forecast indicates earnings will continue to decline throughout the year, down five per cent on the corresponding period.
Brookes has accepted a 5.3 per cent salary increase as part of the renewed contract, which will see his gross yearly earnings jump to $1.8 million. Despite tough trading conditions, Brookes has stated Myer will not change its approach.
“Despite the ongoing challenging retail environment, or strategy remains unchanged,” Brookes said.
For more on the innovations Brookes introduced during his reign, pick up a copy of Ragtrader's August 12 edition.