Myer Group executive chair Olivia Wirth has told investors that there is an opportunity to change the way that Myer’s exclusive brand portfolio designs, produces and develops products.
The exclusive brand portfolio includes private label brands Sass & Bide, Marcs and David Lawrence, as well as the recently added Apparel Brands from a deal with Premier Investments – Just Jeans, Jay Jays, Jacqui E, Dotti and Portmans.
In a Q&A following Myer’s first half FY25 investor presentation, Wirth said the group will become Australia's second largest producer of apparel following the Apparel Brands merger.
“That obviously gives us scale. And scale is a very important factor when you think about the opportunities that it brings with working direct-to-factory and developing a new model within the Myer Group.
“Clearly there are opportunities to streamline how Apparel Brands currently work along with the group.
“There's an opportunity to change the way that Myer, as in the Myer exclusive brand, design, produce and develop products to make sure that they're increasingly efficient, to have greater flexibility in turn time. So that is work underway, and an opportunity there.”
In its 2023 modern slavery statement, Myer reported that it had engaged over 250 private brand suppliers across 12 sourcing countries, with a majority located in China, followed by India, Bangladesh and Vietnam.
This rundown for Myer is similar to Premier Investments' supply chain according to its 2023 modern slavery statement, which also then looked after Smiggle and Peter Alexander. Following the recent transaction with Myer, Premier now just runs both Smiggle and Peter Alexander brands.
Both companies are yet to release their 2024 statements.
Wirth’s response over sourcing came from a question which also highlighted changes in the China production market, which is currently bracing for shifts following ongoing tariff implementations by the United States.
Wirth said there is opportunity in China, and across Asia as well, in terms of sourcing changes.
“We believe that there is potential upside for us given the changing nature of manufacturing in China, and we look forward to updating you on that process in due course,” she said.
“Obviously, with the current situation with the US, we've seen companies, in some instances, already move their manufacturing out of China, and obviously that provides opportunity for those that are currently there, including the Myer Group.
“So yes, there's obviously opportunity in a US tariff environment, and we intend to seize on that opportunity.”
These comments came after Wirth revealed key guidance on the Apparel Brands portfolio, which is expected to drive at least 30 million of earnings annually over the short to medium term, and drive significant ECS accretion on a pro forma basis.