Recent news of a possible Myer–David Jones merger has prompted many people to ask whether this could be an opportunity for the two retailers to mutually benefit from each other’s customers, or whether, because there is already being so much cross-shopping between the two stores, there’ll be no real advantage at all.
According to the latest findings from Roy Morgan Research, Myer attracted approximately 5.8 million customers aged 14 and over throughout 2013, while David Jones brought in just over half that number at 3.4 million. However, taking crossover customers into consideration, this does not add a great deal to the overall combined figure — especially from Myer’s perspective, as three quarters (2.5 million) of David Jones’ 3.4 million customers also shopped at Myer last year.
Of more potential benefit to Myer is the fact that a typical David Jones shopper spends on average $195 at David Jones in any given four weeks, compared to a typical Myer shopper, who spends $165 at Myer in the same period.
Number of customers who bought from Myer and David Jones – last 12 months
Source: Roy Morgan Single Source (Australia), January 2013–December 2013. n= 17,077. Base: Australians aged 14+
Warren Reid, Group Account Manager – Consumer Products, Roy Morgan Research, says:
"While a merger between Myer and David Jones may result in efficiency gains such as store rationalisation, logistical benefits, increased buying power and even savings in advertising budget, the question remains as to whether customer numbers and average spend can be grown.
“A merger may provide an opportunity for David Jones to grow its customer profile among the younger and more frequent shoppers that Myer tends to attract. Currently, David Jones appeals to more mature, affluent shoppers who buy more expensive products — hence their higher spend at the store in an average four-week period.
“Roy Morgan’s new psychographic classification system Helix Personas helps retailers understand their customers in greater detail. For example, people who shop at David Jones are more likely than the average Myer customer to belong to the ‘Healthy, Wealthy and Wise’ persona — well-paid, socially aware professionals who typically rent inner-city apartments at high cost and take care of their health.”
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Roy Morgan Research
Roy Morgan Research is Australia's best known and longest established market research and public opinion survey company. Roy Morgan Single Source is thorough, accurate, and provides comprehensive, directly applicable information about current and future customers. It is unique in that it directs all the questions to each individual from a base survey sample of around 55,000 interviews in Australia and 15,000 interviews in New Zealand annually - the largest Single Source databases in the world. The questions asked relate to lifestyle and attitudes, media consumption habits (including TV, radio, newspapers, magazines, cinema, catalogues, pay TV and the Internet), brand and product usage, purchase intentions, retail visitations, service provider preferences, financial information and recreation and leisure activities. This lead product is supported by a nationally networked, consultancy-orientated market research capability.
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