👉 Background: Myer is the Aussie upscale department store chain that was founded in 1900 - 123 years ago. It has certainly had its ups and downs over the last few decades, but last week, things were good.

👉 What happened: Myer announced a $65 million half-year profit. And on top of that, Myer has maintained its goal of hitting the billion-dollar mark for annual digital sales.

👉 What else: Sales are still up 31.5 per cent over the past three years to $382 million for the half year. And Myer reckons its new automated distribution centre will improve the online shopping experience.

What's the key learning?

💡 Aussie department stores, like Myer and David Jones, are shrinking to greatness. Think: reducing physical real estate, number of staff or number of stores to unlock more value.

💡 Myer’s CEO thinks that the reason for Myer’s turnaround are a few things.

1. The "customer first” plan, which has involved investing more in digital sales channels and less in physical retail channels
2. Reducing floor space, which cuts rent costs and general footprint in shopping centres
3. General cost cutting

💡 On top of this, Myer shoppers have been buying up when it comes to discretionary items, like fragrances, cosmetics and accessories. And David Jones has experienced the same growth. Finally a good time to be an Aussie department store.

‍