Former Qantas executive Olivia Wirth is the new boss of Myer, and while she has a lot of knowledge of frequent flying and airlines, she has limited knowledge of retail.
Wirth was appointed to run Myer, with the blessing of the retailer’s largest shareholder Solomon Lew following the exit of the department store’s chairman, Ari Mervis, after just four months.
Ms Wirth’s salary will be $1.25 million per annum, including superannuation.
Between now and when she will take up the role, she will be paid $250,000.
She will then participate in a short-term and long-term incentives program from 2025 onwards.
Ms Wirth and long-time investor Gary Weiss joined the Myer board in October.
At Qantas, Ms Wirth oversaw the expansion of the Frequent Flyer program to generate over $500 million in annual earnings, $2 billion in revenue and have a membership of 15.8 million. Previously, she was the airline’s chief customer officer and head of corporate affairs.
Earlier today Myer reported that first half net profit for the 26 weeks ended January 27 was $52 million – in line with its February update, but down from $65 million a year ago.
Statutory net profit of $50.5 million includes significant items of $1.5 million from tax adjustments related to prior periods, and software costs that cannot be capitalised.
The December-half was dented by discounting and inflationary cost pressures.
Myer’s interim sales fell 3 per cent to $1.829 billion, or flat on a same-store basis. Group online sales were $390.1 million, or 21.3 per cent of total sales, an increase of 2 per cent on the prior period.
Myer declared an interim dividend of 3¢ per share, down from 4¢ a year ago.
For Ms Wirth it has been a quick race to the top of the 124-year-old department store owner given she only joined the retailer’s board in November claims the Australian.
With her new role comes the leadership of the nation’s largest department store, with current Myer boss John King to step down in June.
“I am honoured to lead one of Australia’s iconic businesses and brands into a new and exciting phase,” Ms Wirth said on Thursday. “Myer is loved by millions of Australians and is one of the nation’s most enduring retailers thanks to the dedication and skill of our team members, and the loyalty of our customers.
“My immediate priorities will be ensuring we are delivering a great in-store experience with a world-class range and best-in-class customer service, while investing in e-commerce and harnessing loyalty and partnerships among our customers and suppliers. I want to thank both Ari and John for their service to Myer and support.”
