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Michael Hill, the Brisbane-based jeweller with some 300 branches worldwide, has appointed Daniel Bracken as its new chief executive officer after its chief, Phil Taylor, resigned for health reasons.

Bracken, a former deputy CEO at Myer, where he'd been 3 1/2 years, had joined Specialty Fashion Group less than eight months ago, taking over from Gary Perlstein in February. He previously ran The Apparel Group, which owns Australian brands including Sportscraft, Saba, Willow and Jag.

In a statement to the ASX, Michael Hill said Bracken has "more than 25 years of extensive experience in retail and fashion across many iconic brands". He earlier spent 13 years with British luxury retailer Burberry's.

It said that in his stint at Specialty Fashion, he "led the company's restructure and successful divestment of the Millers, Katies, Crossroads, Autograph and Rivers brands, resulting in a significant improvement in shareholder value". Specialty Fashion's shares jumped fivefold over the past eight months, last trading at $1.25.

The company's shares jumped fivefold under Bracken's leadership.
The company's shares jumped fivefold under Bracken's leadership.
Bracken will take up his new job on November 15 and will get an annual base salary of $950,000, plus short-term incentives of up to 70 per cent of that pay if performance targets are met.

Despite posting a $486 million statutory net loss earlier in the week, Myer’s stock price, at 57 cents per share at close of trade on Thursday, reached a six-month high.

This is compared to 42 cents per share at close of trade on Wednesday, after the company unveiled “disappointing” full-year results a month after management shake-ups and calls to refocus on the consumer.

Myer chief executive John King’s level-headed approach to reinvent the Myer brand seems to have gone over well with shareholders.

“It’s been 100 days since I started at Myer, which was just before the end of the financial year,” King said during the company’s investor call on Wednesday.

“I’m as positive about the future of Myer today as I was on my first day, when I spoke to team members in Doncaster.”

King’s whirlwind, ground-floor tour across Myer stores, of which he has 18 left to visit, has left a sizeable impact on the company’s direction moving forward – attuning King to the needs and wants of the Myer shopper.

“The customer’s message is simple: we want great brands, at good prices, with leading service whether that be in store or online,” King said. “We are acting on it.”

Having spent time listening to and speaking with customers, team members, suppliers, brand partners and landlords, Myer’s turnaround plan involves a three-pronged approach to better serving its customers.

Firstly, the department store looks to transform the customer experience across the business. This involves re-positioning Myer within the retail space, refurbishing and in some cases re-sizing stores, and focusing on resetting service standards.

One of the main issues vocalised by Myer customers to King is that there is never enough staff, and it’s hard to find a till that is open.

The group is experimenting with giving certain store more money to invest in staff to see what effect this has on customer satisfaction, and hopes in future to consolidate the stores till system to allow easier access for customers.

Secondly, the department store is going to focus more heavily on its ‘Only at Myer’ branded category.

“We will invest to grow Myer exclusive brands, with broader assortments and extensions to additional categories. We will build destination categories such as accessories, and exit selected categories where Myer is less profitable,” King said.

“We will add new brands that are exclusive to not only Myer, but to Australia where appropriate.”

One of the ‘categories’ Myer looks to exit from during 2019 is it’s clearance zones, which King notes he “hates”.

“I want to be clear: our focus is on profitability and we will not chase unprofitable sales just to hit a top line sales number,” King said, adding that the company didn’t want to sell a $10 note for $5.

Finally, Myer looks to refocus its online presence around a mobile-optimised store, giving customers an easier way to filter and search for Myer products, with King adding that the company is looking to make it the “number-one store” within two years.

“We will be leveraging our Myer One data in a much more efficient way to drive multi-channel customer engagement and growth, and we will enhance our efficiency and fulfilment operations through our DCs to improve profitability,” King said.

The new Myer website will be launched in the coming weeks.

According to King, a department store is only a winning format if it’s relevant to the customer, which is tied intrinsically to a strong online business.

“I think the opportunity for us is to actually grow the top line via online, stabilise the store portfolio, reduce the cost of operating those stores, reduce the space in those stores because we don’t need as much space, and then we’ll improve the profitability of the business, both in-store and online,” King said.

The struggling Australian retail sector is emerging as a private equity hotspot and deal makers expect activity to remain strong, led by firms keen to turn around major brands.

Retail sales in Australia have remained sluggish in the past few months and the most recent figures for March showed zero growth for that month.

Spending on clothing and ac­cessories, household goods and department stores all slowed during the month and economists have warned that a sudden jump in sales is unlikely.

However, private equity funds have poured more than $1.5 billion into the retail sector in just a few months and are expected to remain active buyers.

Figures compiled by The Australian showed that in the past six months at least six major retail deals involved private equity funds buying out companies.

The largest transaction, involving skin and hair care manufacturer BWX, emerged last week when Bain Capital teamed with the company’s management to offer $860 million for the firm. The offer was made at a 50 per cent premium to the company’s last price on the ASX.

The deal came a fortnight after Noni B and its major shareholder Alceon paid $31m for a portfolio of five brands from the embattled Specialty Fashion Group.

The Australian Private Equity and Venture Capital Association (AVCAL) estimates that last year funds invested $720m in consumer good and retail businesses, which accounted for 19 per cent of total spending.

KPMG mergers and acquisition partner Luke Lawrentschuk said the demand from private funds for Australian retail was expected to remain strong, even though the sales forecast in the sector were weak.

He said funds would be keen to buy Australian business that could be easily expanded and in sectors favoured by consumers.

“There’s been a track record in Australia of successful retail deals being carried out. I think the business models of companies or brands which are being bought is very important,” he said.

“They need to be relatable, they need to be easy to understand, the business model should not be complex and they should be able to be scaled up.

“That’s the play book of private equity.”

Mr Lawrentschuk said he believed that most retail-focused private equity investment in the future would be in lifestyle, entertainment, and food and nutritional product firms.

In New Zealand, Comvita, which manufactures manuka honey, last week revealed it had received a takeover offer from a mystery bidder but it had fallen through after the parties could not agree on price.

Mr Lawrentschuk said the number of funds active in Australia was higher now, as the local private investment industry had matured.

“There is a lot of dry powder in Australia in private equity because there is a lot of money that has been raised,” he said.

“The private equity industry has gone through a number of stages. There were a large number of very big funds that had developed five to 10 years ago.

“Now there are a lot of smaller funds which have been set up by people who have left those bigger organisations.”

Allens partner Tom Story said Australian fashion labels were also increasingly likely to be on the radar of private buyers keen to expand the businesses overseas.

In the past two years, Collette, Tigerlily and swimwear designer Zimmermann stakes were sold to private equity buyers.

Mr Story said he thought it unlikely that private equity buyouts of “bricks and mortar” retailers like Myer or David Jones would be on the cards, primarily because of the high property leasing costs involved.

However, he said future investment would be targeted.

“I think a big buyout fund would find it very challenging buying into traditional retail,” he said.

“There’s a range of retailers that have found it very tough but there are aspects of retail that are very attractive to turnaround-type or distressed-asset investors.

“There has been success in buying high-end fashion brands ... the buyers have looked to expand into Asia and the US and that has worked where there’s been a very successful brand.”

While Maison Simons offers customers the latest trends in clothing, accessories, and home décor, it’s another trend that is gaining the brand attention and accolades. Improving its sustainability, the company recently opened the first zero net energy store in Quebec City, Canada.

Using industry-leading technologies to eliminate its carbon footprint, the store is designed to generate as much energy on-site as it annually consumes. The 80,000-square-foot space, which was formerly a Target, is powered by solar energy, and heated and cooled using a geothermal system that regulates temperature by tapping into the energy of the earth, improving its energy efficiency by 60%.

Maison Simons Quebec City | Shopify Retail blogSustainability has been a hot topic in the past few years. And Maison Simons may be setting a high bar, but retailers of all sizes can take steps to become more sustainable by focusing on practices and products.

Why should retailers pay attention to sustainability? Other than the ethical reasons (you know, conserving this great planet we live on), going green offers a wealth of benefits for both retailers and their customers. Customers are paying attention: 93% of global consumers expect more of the brands they use to support social and environmental issues, according to a report by the Retail Industry Leaders Association (RILA).

In addition, the report found that an estimated 68 million adult Americans base purchasing decisions on their values — personal, social, and environmental — and say they will spend up to 20% more on environmentally sound products.

So, many customers are happy to invest in sustainable retailers. But going green is about much than just conserving energy or using longer-lasting light bulbs. Sustainability gives you an opportunity to better connect with your customers, and while having a zero net energy store might not be within grasp just yet, there are smaller steps you can take. Here are five ways to participate in the growing trend of sustainability in the retail industry.

How to Make Your Retail Business More Sustainable
1. Go Paperless
Paperless in retail | Shopify Retail blogYour business might consume a lot of paper, and one of the easiest ways to cut back is by emailing receipts. Not only will you save resources; your customers will likely one less piece of paper to handle, too. According to research, 250 million gallons of oil, 10 million trees, and 1 billion gallons of water are used to create receipts just in the U.S. each year. Eliminating paper receipts not only considerably reduces a business’s carbon footprint, but it ensures that receipts aren’t later discarded as waste.

Going paperless can create efficiencies, help you automate more of your business processes, and offer your customers better security. Transitioning to digital receipts is a great first step toward going paper-free, and they allow you to leverage that valuable real estate on those digital receipts to make more sales. Include links to your website as well as your social media platforms on your receipts, as well as news about upcoming events and promotions.

Rather than using paper calendars, try using a digital calendar tool like Calendly or 10to8 to book appointments with clients and maintain employee schedules. Also, sign up for paper-free statements for your banking and financial needs, and send invoices via email to your customers. You’ll be surprised how little effort it takes to reduce your paper consumption.

2. Cut Waste Out of Your Manufacturing Process
Customers care about how their products are made and they want to know that you care, too.

Manufacturing can produce a lot of waste, and you can make a move toward sustainability by monitoring your supply chain.

If you make any of your own goods, audit your waste and look for ways to substitute recyclable or reusable products into the manufacturing process. If you purchase and resell premade goods, ask for transparency from your vendors in relation to issues such as labor practices, safety conditions, pollution, and waste. Currently, there are no industry standards on disclosure, and it’s up to you to be proactive when obtaining this information.

3. Look for Clean Energy Options
In addition to reducing physical consumption, consider switching to energy methods that consume and emit less waste. This is an area where going green helps you save serious money; energy is the fourth-largest in-store operating cost for retailers after labor, rent, and marketing, according to a report by McKinsey.

Contact your utility suppliers and ask that they conduct energy audits on your store, suggesting ways you can lower usage. A quick update is to switch to LED light bulbs, which use less power. And you can also look into solar options for powering lights and other electronics.

Lowering your thermostat seven to 10 degrees Fahrenheit for eight hours a day reduces consumption by 10%, according to the U.S. Department of Energy.

Turn off your computer, copier and printers when you leave for the day. And be sure to get your employees on board with your energy mission, appointing a “green team” or energy advocate to monitor usage. Simple behavioral changes are no- or low-cost energy savings opportunities, according to RILA.

4. Recycle Old Goods
In addition to selling customers new items, look into ways you can help them recycle old or worn-out goods.

For example, Eileen Fisher stores feature a Green Eileen project which collects, repairs, and resells used company-brand clothing and donates the proceeds to nonprofit organizations that benefit women and children.

Outdoor brand North Face has created a Clothes the Loop program, which collects used clothing and gives customers a $10 off a purchase of $100 or more. Items are repurposed into products like insulation, carpet padding, stuffing for toys, and fibers for new clothing.

And Nike’s Reuse-A-Shoe collects used shoes that are recycled into material used to create running tracks, playgrounds, and courts.

If your business sells items that replace old goods, consider offering to collect unwanted items that can be repurposed or donated to someone who can use them.

5. Be Transparent
Sustainability is of growing importance to consumers, so be sure to share your mission and work with your customers. Transparency and authenticity are key when it comes to putting sustainability at the forefront of your business.

In this case, you’re not just tooting your own horn: you’re giving customers an opportunity to further their own sustainability efforts by supporting a business (that’s you) that cares about the environment, community, and future.

Moving Forward With a More Sustainable Retail Business
A sustainable business not only will bring you respect from customers; it can save you money and resources in the long run.