2011-3-31 As Myer's flagship store celebrates 100 years with a refurbishment, the company goes hunting for the pink dollar

Olga Galacho From:The Courier-Mail March 31, 201112:00AM

REASON TO CELEBRATE: Models Jessica Hart, Jennifer Hawkins and controversial androgynous international catwalk sensation Andrej Pejic with Myer chief executive Bernie Brookes at the reopening of the company's flagship Bourke St Store in Melbourne 100 years after it first opened for business.



At yesterday's media launch of the refurbished flagship store in Bourke St, Melbourne, chief executive Bernie Brookes gave the first hint that the department store was keen to attract a more "diverse" customer.

He said the store had recruited male model Andrej Pejic known for his androgynous style as an ambassador, despite the catwalk sensation spending most of his time overseas.

"We plan to continue to use Andrej for the next couple of weeks ... but it's hard to lock him up," Mr Brookes said.

The model's "uniqueness" made him a good fit for Myer, he said.

"We do demonstrate a very high degree of diversity."

Some analysts speculated the department stores could be about to launch the gay market wars, with David Jones also recently recruiting model Heath Townsend, the first male face of DJs.

Shaw Stockbroking analyst Scott Marshall said David Jones commanded strong loyalty from high-disposable income gay customers and it would not be impossible to imagine that Myer may want "a piece of that action".

"Rival big retailers go head to head in fuel wars, liquor wars, milk wars so it could be that the gay market wars are the next battleground."

On the company's controversial outright purchase of fashion house Sass & Bide, Mr Brookes said he believed it could become the biggest brand in Myer over the next few years as it expanded into intimate apparel, cosmetics and footwear.

"It is what we call earnings accretive ... we bought it at 5.8 times multiple of EBITDA, which is not cheap but is a very realistic price," he said, adding that the company had no intention of buying further labels in the short term.

Mr Brookes said he welcomed the entrance of Spanish fashion house Zara, which plans to open in the Bourke St Mall some time this year.

"It will lift our game. Zara will be located almost outside our door. In a honeypot type mentality (sic), it will bring a whole lot of people back in to the city to take the sweet taste of Zara, Myer or David Jones."

Mr Brookes re-affirmed full-year earnings could drop up to 5 per cent as consumers kept their wallets shut, but he expected the Bourke St store would attract 26 million customers a year.

The store should generate sales of $300 million next year, from this year's forecast $220 million thanks to the refurbishment.

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