Myer stocks plummet 10pc as Brookes walks out the door
INVESTORS crucified Myer’s share price, throwing its market capitalisation below a billion dollars, after long-time boss Bernie Brookes walked away to be replaced by an executive who has been with the retailer only five months.
Shares in the 115-year-old department store chain fell almost 11 per cent after Mr Brookes, who has steered the retailer through a tough nine years which included the global financial crisis and the advent of online shopping, revealed he would leave the chief job immediately.
The share price fell 10.78 per cent to $1.64, losing almost $130 million from its value, leaving the market capitalisation at $969 million.
Mr Brookes is being replaced by 48-year-old UK-born Richard Umbers, who built his reputation at Woolworths and Australia Post.
Mr Umbers was picked for his online retail expertise and is known as a lateral thinker who drove innovations which have helped boost Australia Post’s parcel revenue as internet shopping exploded.
The new chief vowed to build on Mr Brooke’s legacy, saying the results of a review of operations would be revealed later in the year.
He said: “The forces of globalisation and digitisation are the prevailing forces on the industry – we have to be customer-centric and nimble.”
Myer’s long-time chief financial officer, Mark Ashby, has also departed the retailer, taking up a job in the US.
Despite moves to revive the iconic company, including making over its store network and rebuilding its Melbourne Emporium site, Myer has suffered a 40 per cent earnings fall in six years.
Myer chairman Paul McClintock acknowledged major changes were needed at Myer.
He said Mr Umbers would lead a “significant program of change and reinvigoration”.
He said the store must “be able to adapt faster as retail evolves”.
Mr Umbers had “extensive experience leading change and using technology to build strong customer relationships”, he said.
A review of the company revealed the reform process would take up to four years and the board wanted a chief executive officer who would be in for the long haul to oversee the reforms.
Mr Brookes had wanted to walk away last August but stayed while Myer made a failed bid to take over David Jones.