Beware!!! Next Victim of Closing Down – Myer’s Performance Declining in 2015


A success marketing of a product becomes the main objective of many companies recently. To succeed this marketing, an evaluation of marketing must be conducted to understand which part of marketing that wrongly implemented. There are several metrics that used for marketing evaluation. Myer; as an example of this blog is an Australian company that focused on selling high-class fashion. Through the annual report, Myer conducts several marketing evaluations every year.

Gross Margin Evaluation

Gross margin is one of basis metric that used by many companies to evaluate the performance for a specific period of time. Bendle (2016, p.77) write that margin is the result of deduction between price and cost before accounting which is represented as percentage or dollar. Additionally, this gross margin can be expressed as selected period of time or per-assembly (Bendle 2016, p.77). Below is the annual report of 2015 of Myer Department Store


Source: Myer 2015, p.6

Based on the operating gross profit that presented in above, it can be described that on 2015, the gross profit on 2015 is lower than the previous year by presenting 40.4%. It means that performance of Myer on transportation and production are worse than 2014. Furthermore, this result also shows that 2013 is the best performance on transportation and production by showing 41.5%. The reason why Myer’s operating gross profit margin starts to decline from 2014 because many famous brands are jumped down (Harper 2015). Moreover, this jumped down of sales also causes reducing staffs (Mitchell 2015). This problem can be solved by adding more 6 employees in average or 8% for every branch (Mitchell 2015).

Customers Satisfaction Evaluation

Today, retaining customer satisfaction is a compulsory job for companies because customer satisfaction has a strong relationship with reputation. Furthermore, this customer satisfaction can be calculated by using the amount of customers, and retention rate measurement (Bendle 2016, p.160). This measurement is commonly used by many companies as part of monitoring result of pulling customers (Bendle 2016, p.160). Myer as a main retail company in Australia also measures how excellent Myer’s result on pulling customers. Below is the result of customer satisfaction that recorded in 2015 annual report.



Source: Myer 2015, p.17

Myer does not mention the result on number format, but this report only reveals that result of customer satisfaction is matched with the target. However, if 2015 result compared with 2014, Myer’s service has been decrease because Myer’s shop assistants do not focus on service when customers wait for the services (Wells 2012). Furthermore, code of ethics training must be given to these shop assistants to increase the efficiency of services.

Sales Evaluation

The movement of sales is important for company to analyze whether these company will gain more profit or losses. This movement of sales can be measured through different method. Inventories is one of method of measurement to calculate company’s potential to satisfy customer’s demand and investments (Bundle 2016, p.189). This measurement must be used by Myer to analyze how great this company for dealing with sales for one year. Below is the report of inventories of Myer between 2014 and 2015.


Source: Myer 2015, p.77

This table shows that there is a slightly difference between 2014 and 2015 whereas in 2015, the Myer’s inventories increase by $5,144,000. This means that inventory turnover in Myer is very low as a consequence of low sales during 2015. Furthermore, this low inventory turnover has a strong relationship with gross profit margin which already discussed in previous topic that starts to decrease from 2014 and year 2014 becomes the lowest gross profit margin since 2011. After seeing this problem, Myer has started to redevelop inventory management (Knight 2015). Myer also starts to replace several department staffs to show that there is a transformation in Myer Company for better future (Knight 2015).


All in all, marketing measurement is important to support marketing analysis for any size of companies. Furthermore, 3 different types of measurement that already discussed in above are fraction of dozens different measurement. This measurement involves not only marketing members but also accounting and financial analysts as support for any companies to provide better performance in future. It is recommended for Myer which starts to decrease the profit, to apply this measurement as part of suggestion for business survival in future.

Name: Hansel Anggie Susanto

ID        : 213042054 –

WordPress ID: hanselsusanto


Bendle, N T, Farris, P W, Pfeiffer, P E & Reibstein, D J 2016, Marketing metrics: the manager’s guide to measuring marketing performance, 3rd edn, Pearson Education, New Jersey

Harper, J 2015, ‘Myer’s poor sales results could mean stores will be forced to close’, The Daily Telegraph, 19 March, retrieved 20 September 2016,

Knight, E 2015, ‘Myer’s executive clearance’, The Sydney Morning Herald, 3 March, retrieved 20 September 2016,

Mitchell, S 2015, ‘Myer needs more staff to boost sales’, The Sydney Morning Herald, 17 March, retrieved 20 September 2016,

Myer 2015, Myer annual report 2015, retrieved 19 September 2016,

Wells, R 2012, ‘Customer service: who is the worst’, The Sydney Morning Herald, 26 September, retrieved 20 September 2016,



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