TECHNOLOGY SPECTATOR: Myer's new window

Myer begins an online push, while Fairfax hunts for further tie-ups in online classifieds.

It was a big week for traditional and online retailers, with Myer moving forward with plans to turn its website from average to world class and Ruslan Kogan expanding his bag of goodies on offer at Kogan.com. Elsewhere, plans to resuscitate BPay's MAMBO project are firmly on the backburner, Fairfax mulls new partnerships in the online classifieds sector and home troubles reduce the potential of an imminent Netflix move down under.

Myer, Kogan.com, Ohki

We start with Myer, which has managed to put forward some credible numbers despite the weakness in the retail environment. However, while significant cost management and discounting has managed to stem the bleeding to some extent, the department store's management knows it needs to do more to integrate its bricks-and-mortar offerings with its online channels. The rise of online retail has coincided with a shift in consumer behaviour with customers, especially in urban areas, reluctant to part with their hard-earned cash and the onus is very much on the traditional retailers to start generating bigger online sales. To that effect, Myer boss Bernie Brookes has announced plans to give its online store a $9 million tune-up, designed to lift its online sales from $5 million to at least around $30 million.

Leaving aside the criticisms that the likes of Myer, David Jones and Harvey Norman have been slow of the mark when it comes to exploiting the online space and the question marks around whether Myer's stated goal of boosting its online sales six times its current level is achievable or not, there are two things to keep in mind. Firstly, the strategy of developing a multi-channel offering has already been successfully tested by US department giants like JC Penney and Macy's. The second key weapon in Myer's arsenal is its MYER one loyalty program, which provides the company with a solid database of loyal customers. The program is likely going to play a key role in supporting the retailer's multi-channel strategy. Sales to MYER one customers were over $2 billion in FY2011 and Brookes has flagged that the new look website will include a private shopping club for its top MYER one members and an online deals option, which should come in handy when it comes to shedding excess inventory. With about 11 million unique visits to its website in the last 12 months there is potential for the retailer to improve on that by melding its department store and online operations together.