👉 Background: Myer has been a mainstay in the Australia fashion market ever since its first store opened back in 1900. But somewhere along the way, Myer’s brand and business fell by the wayside. In fact, in early 2020, Myer's market cap fell all the way down to $237 million in December 2020 (from a high of $2.2 billion when it first listed).

‍👉 What happened: Myer hired a new CEO back in June 2024 and she’s been planning a huge turnaround. Unfortunately for Myer though, these things might take a fair bit of time - and investors are an impatient bunch. Now, Myer warned that its net profit was down by nearly 40% in the most recent half.

‍👉 What else: But it’s even worse - because when you take out the accounting impairments, the profit was down 195%. Although Myer tried to reassure its investors that it's going through a "reset period", Myer’s share price dropped by more than 5%. But the good news? The Myer One loyalty program is firing...kind of.

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‍What's the key learning?

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‍💡Loyalty programs are powerful tools for driving repeat business - but they aren’t exactly a silver bullet. At face value, Myer’s loyalty program looks strong: 79% of its sales now come from its Myer One members of which there are 4.6 million members across Australia.

💡The problem is that Myer is generating most of their revenue from its loyal customers but still seeing flat sales and declining profits. So, Myer’s problem isn’t loyalty... but its members’ spending, which is arguably a tougher challenge to solve.

💡Myer’s members are sticking around, but it’s not actually driving a jump in transaction value or purchase frequency that’s actually needed to boost their bottom line.