Qantas’ former loyalty chief Olivia Wirth appointed new Myer boss

Olivia Wirth, former boss of Qantas’ loyalty business, has been appointed to lead Myer as executive chair and chief executive, as the department store seeks to incentivise customers who are pulling back on their spending as cost-of-living pressures mount.

Wirth, who was a prime candidate to replace Alan Joyce in the top job at the airline, announced her resignation from Qantas in October, a few months after that role went to Vanessa Hudson.

Myer outgoing chief executive John King praised Wirth for her experience and track record in strengthening the airline’s loyalty program.

“[Loyalty programs] all started with airlines and retail jumped on the bandwagon 20, 30-odd years ago. I think those guys will always be at the forefront of it, so we’re excited at what she will bring to the strong team we have in place here,” King told this masthead.

The department store’s loyalty program, Myer One, is set to become a more significant part of its business. During the half-year, Myer One acquired 374,000 new members, lifting the total number of active members to more than 4.3 million. The majority of Myer’s sales, 76 per cent, come from Myer One members.

King said the business, which has recovered since its $172 million loss after COVID-19 lockdowns battered retailers, is in a stronger position now, having reduced its store footprint and introduced robots at its fulfilment centres. “It’s now about focus on the soft stuff, which is the customer and using technology to integrate with the customer,” he said.

As part of the leadership transition, King will remain in his role until June 3. Wirth will take over a day after King retires.

Wirth said in a statement to the ASX that she was honoured to lead one of Australia’s most iconic businesses and enduring retailers.

“The next chapter in Myer’s story requires us to continue tackling some significant challenges and meet the changing needs of our customers. I am focused on delivering improved outcomes for our valued customers, team members and all Myer shareholders,” she said.

“My immediate priorities will be ensuring we are delivering a great in-store experience with a world-class range and best-in-class customer service, while investing in e-commerce and harnessing loyalty and partnerships among our customers and suppliers.”

“Over the coming weeks, I will be meeting with the team and our loyal customers to hear from them first-hand about their needs and gathering their feedback on our growth plans,” she said.

Wirth worked at Qantas for 14 years and was the head of Qantas Loyalty, which includes the airline’s frequent flyer program, since 2018. Before that, she held roles including chief customer officer and group executive for brand, marketing and corporate affairs.

Qantas’ frequent-flyer program has about 15 million members. The airline faced significant backlash from customers, shareholders and politicians last year amid high airfares, poor customer service, a high number of delays and cancellations, together with difficulty redeeming frequent-flyer points.

Between now and June 4, Wirth will be paid a pro rata salary of $250,000 a year. Once she commences her executive chair and CEO duties, she will be paid $1.25 million a year. She will be eligible for bonuses from fiscal 2025, with her maximum short-term bonus equal to 90 per cent of her $1.25 million fixed compensation.

Myer made the announcement to coincide with the release of its half-year results, in which the department store posted a 3 per cent decline in sales to $1.83 billion and a 19.9 per cent slide in net profit to $52 million. The company also declared a fully franked interim dividend of 3¢ a share.

Qantas chief executive Vanessa Hudson and her predecessor Alan Joyce.

Shareholders took heart from the news, pushing Myer shares up more than 7 per cent at lunchtime.

As part of the board changes, Myer also announced that non-executive director Gary Weiss has been appointed as deputy chair and lead independent director, a newly created role.

Myer’s executive general manager of stores, Tony Sutton, has been promoted to the newly created position of chief operating officer, reporting to Wirth. He has spent more than three decades at the department store.

When queried in an investor conference call as to why Wirth had been named both CEO and executive chair, an unusual move for an ASX board, which typically separates the two roles to ensure oversight of the CEO, King described the move as “the most appropriate structure for continuity”.

Myer has posted half-yearly results showing a 3 per cent decline in sales.

“I think the board felt this was the most appropriate structure for the business at this time,” King said. “We thought it’s the most appropriate and effective way of transitioning our way to growth.”

King told this masthead the arrangement was not uncommon in other parts of the world, and the move would see Wirth “hit the ground running”.

In the 26 weeks to the end of January, King said customers were more careful about their discretionary spending, with the department store forced to hold more promotions to boost sales. The retailer is focused on stocking clothing at a range of price points, as consumers seek value when they part with their money.

Myer’s comparable sales lifted 4.9 per cent across February and early March, compared to the same period last year, with King flagging confidence for the second half of the year.

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