I arrive at The Press Club on Flinders Street a little early. It’s booked solid. Another noisy night. Kara leads me to one of the quieter tables around the corner. Water will be fine, thank you.

The clock is ticking as retailers seek a model that works. Pic: AFP

Remarkable to think this was once the headquarters of the mighty Herald and Weekly Times. Newsroom into luxury apartments, print shop into cellar bar, foyer into modern Greek restaurant. Marvelous what you can do with some Kalamata olives and Feta drizzled with a hit television series and a celebrity chef.

Bernie Brookes makes his way to my table. The chief of Myer Holdings is all smiles. Always is. The perils of more than 30 years in retail. The last few herding shareholders. The shoulders of his dark suit are a little stooped.

You’re looking well.

The self confidence shines through as he orders a beer and takes a seat.

I figure I’ll just come right out and say it.

Free shipping? You’re kidding right.

It’s a logical move. We have to offer our customers an online advantage. We want to boost our online turnover.

I’m sure you do.

We do about $5 million a year online. The plan is to increase that closer to $50 million a year very quickly.

Don’t hold your breath, Bernie.

This is something we have been planning for a while now. Obviously free shipping comes at a cost, but we have run the numbers and we believe the model works.

Bernie, how does it even begin to serve the customer?

Our people tell us that revenue can be expected to rise between five and tenfold when an online retailer offers its customers free shipping.

Well, I wouldn’t believe everything DTDigital tell you.

Our waiter returns with a beer and the menus. Bernie orders first. I ask for the salmon to be grilled with steamed spinach and lemon, no salt.

Bernie, putting a catalogue of products online is not the answer.

Bernie is not so sure.

Our exclusive offer will cover up to 4000 products including the latest in new summer fashion, for him and her, youth fashion, homewares and electrical.

I have to smile. Once a retailer always a retailer.

Online isn’t just another channel. It’s a whole new medium, a whole new media. It’s about connection and links. It’s not about an endless slew of products waiting to be marked down twice a year.

His smile drops.

I want to tell him that he is simply migrating his problems from the real world into the virtual world. That offering free shipping is like not charging shoppers entry into a department store. I want to tell him the truth.

Myer has lost its way. It doesn’t know what it stands for. It’s not even a department store anymore. Its like an open plan shopping mall. Which makes it sound more exciting than it is.

His meal arrives. Beautifully served wild venison with beetroot from the South Australian Flinders Ranges and horiatiki. My salmon is perfect.

If I don’t know why I should go into a Myer store, why will I go into a Myer website?

Well, obviously it is a question of choice.

People don’t need any more choice, Bernie. When the first Myer store opened its doors in Bendigo forty-eight million years ago, when there was next to no choice, that was a good idea. But now we’re drowning in choice.

Choice is a good thing.

Have you been online lately. There’s so much choice we need somebody to save us. That somebody could be you.   

Maybe if I called him Bernard he’d pay for attention.

You’re a leader, you’re supposed to lead. Your supposed to inspire customers and staff to go to a place they’ve never been before. A better place than where they are now.

The waiter appears with dessert menus.

So, what are you going to choose?

“MY DINNER WITH BERNIE” is a slice of fiction. Stefano Boscutti is a writer, director and creative director. When not dining with chief executives, he’s writing stories about men who let ambition get the better of them. You can see more of his work at boscutti.com and marvel at the free shipping.

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28 comments

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    • Erick says:

      06:25am | 08/08/11

      Pretentious.

    • Joe says:

      10:18am | 08/08/11

      You’re only saying that this article is pretentious because a man wrote it.

      If a woman wrote it, you’d be lavishing it with praise.

      Society is so hard on men!

    • Tom says:

      10:02am | 09/08/11

      I think the author was taking the piss out of Myers management.

    • Fiddler says:

      07:54am | 08/08/11

      Yeah, when I can buy stuff for one third the price at ebay than it goes for at Myer, I think I know what I’ll be buying

    • Mahhrat says:

      08:32am | 08/08/11

      I’m just waiting for retailers to figure out that we do our “buying” at review websites.

      My partner bought a beautiful DeLonghi Icona kettle, but refrained from the toaster for a long time, because while the kettle was raved on about, the toaster didn’t fare so well.

      In the end though, she reconsidered her position and concluded that she’ll put up with the lacklustre review for the aethestic of having matching appliances.

      THAT IS THE CHOICE WE CAN MAKE ONLINE.  Oh, and she got a $179 toaster at Harvey’s delivered to her work for $100.  Just saying.

    • Yabba says:

      11:29am | 08/08/11

      So…...Did she get it at Harvey’s or not, with your grammar I am afraid you have kept us all guessing!

    • Mahhrat says:

      11:44am | 08/08/11

      Apologies, I thought the fact that I said “...we do our “buying” at review websites.” was clear enough.

      We visited Harvey’s coz she blew up her old hair straightener.  Noticed the kettle, liked it, bought it online for a $30 discount.

      Didn’t go for the toaster at that time (again online) etc etc.

      The toaster we got delivered for $99 retails at HN for $179.  Our total saving on both purchases was about 30%.  I don’t care who you are, that’s a win.

    • AFR says:

      12:49pm | 08/08/11

      I’m in shock someone would pay a hundred bucks for something that warms bread.

    • Jenn says:

      08:53am | 08/08/11

      Free shipping is definitely an incentive for me. That’s why some overseas sellers get my business. If Australian companies did this, I would buy from them. I am amazed at the low level of uptake of internet shopping by some of our ladies fashion stores. I did a search for Sussan, Jacquie E, Portmans and Cue and none of them have internet shopping. If they did and they offered free shipping, I think they would do well.

    • marley says:

      09:03am | 08/08/11

      Free shipping is nice.  Better pricing in the first place would be even better.  Why would I be happy with free shipping of a camera that’s priced 50-% higher than if I bought it on-line from the US?

      And come to that, if I want to buy a camera on-line, I wouldn’t be going to Myers, I’d be going to a specialist camera dealer.

      The fictional Bernie is simply updating catalogue sales concepts from 50 years ago.  And he thinks that’s innovative?

    • Anna C says:

      09:20am | 08/08/11

      The problem with Myer, apart from tem ripping off customers with their high prices; is that you can’t ever find a shop assistance to save your life. If I had a dollar for every time I went looking for assistance in one of their stores I would be a rich woman. They have no understanding of what customer service is.

      Also here’s a newsflash for Myer: spending big bucks on Jennifer Hawkings to advertise your clothes isn’t going to make me want rush out and them. I suggest you save your money.  Women aren’t stupid. If you want more customers then drop your god damn prices.

      Has anyone been to the Myer store at Top Ryde on a Saturday afternoon? The place is like a morgue. They must be hemorrhaging serious money.

    • Bruce says:

      10:23pm | 08/08/11

      Anna C. Agree. I like going into Myer stores, however, finding help is near impossible. Unless I know EXACTLY what I want, there appears to be little point going into Myers. The shop assistants you can see appear to have to manage a number of service desks and have little or no time to attend to enquires. I realize that its not the staffs fault, they appear to be doing the best they can with very limited resources and in most cases over priced goods. Yes, I usually check on line pricing before or after I go into Myer, just in case their pricing might be competitive, its not !!

    • Pork says:

      09:49am | 08/08/11

      Stefano, this is one of the most alienating pieces of writing I’ve ever seen on The Punch.  @Erick nailed it.  This is pretentious.  Further, I’m not sure what is fact or fiction.  Nor do I know why ‘Bernie’ is having lunch with this smug, conceited person at all or why their views should have any stock placed in them.  I feel absolutely no sympathy or connection whatsoever with this judgemental protagonist.
      And this: “Online isn’t just another channel. It’s a whole new medium, a whole new media. It’s about connection and links. It’s not about an endless slew of products waiting to be marked down twice a year.”
      Maybe I’m as dense as ‘Bernie’ - and my potatoes come from Wonthaggie, budget rump from the Goulburn abbatoir and carrots from Dapto - but when I go shopping online it is solely about getting the product I want for the best possible price.  I’d expect free delivery - possibly made practical/affordable by having outlets all around the country - may well bring Harvey Norman, Myer, DJs, etc right back into the game.
      But do tell Stefano (as you haven’t above): What exactly is your uber vision for the net that justifies you casting Bernie and I as laughable ludites?

    • Sam says:

      09:50am | 08/08/11

      Myers, have always been the most expensive store in town, they source their product from China and pay a pittance for it. The item Myers pays $5-00 for today will be on a shelf for $110-00 in their store, then they have a sale and say we have slashed 30% off.

      Im sorry Myers we know what you pay for an item, we know that when you have a sale you are still making a fortune, so the day when you offer goods at reasonable prices then I may walk into your store, but I still doubt it because I would have to put up with your reduced staff levels, I will have to search in vain for a staff member for help and i will have to line up and wait and wait and wait to be able to pay for my items. And I havent even mentioned that to get to your overpriced store with minimal staff levels, I will have to drive and drive and find a park.

      As this article states it is a waste of time money and effort having an online presence if you dont provide competitive pricing and service! I will guarantee that even with free shipping you will still be wayyyyyyyyyyyy too expensive !!!

    • VVS says:

      11:12am | 08/08/11

      You’ve never been to David Jones…

    • Jackie-loves to shop says:

      10:12am | 08/08/11

      blah blah article but, free shipping is not enough incentive to shop online or in the real world with the big department stores, nothing interesting, theres the country road section, the sportscraft section, the witcherey etc etc, why would I bother?
      If they woke up, took out the big brands that are all in the mall & livened it up, & staffed it up, paid for my parking, then I might consider…

    • Jackie-loves to shop says:

      12:42pm | 08/08/11

      Totally the service, I was in DJ’s yesterday, across the children’s clothes, shoes, toys, prams & cots depts there was 1 staff member trying to serve & restock. It’s not her fault that customers were walking out although I can imagine the boardroom blaming staff. You can only get instore sales if you have someone at the register…

    • Lisa H. says:

      01:19pm | 08/08/11

      I’ve heard this problem of lack of staff come up again and again and again.

      Doesn’t anyone relate the lack of staff to the high cost of staff, the hidden costs such as super and PAYG, and the ‘modern’ inflexibility and risk of hiring staff in Australia?

      Surely retailers, more than anyone, are aware of the importance of customer service in retailing…. they just can’t afford to hire anymore.

      But no-one on the Punch ever says or publicly considers that. Why?

    • Bomb78 says:

      02:44pm | 08/08/11

      Lisa H - PAYG is not a hidden cost, it’s just the governments cut of your wages. But you are on the money - the retail businesses I work with know their customers want better service, but they can’t afford to provide it.
      I hate to say it, but we had greater workplace flexibility, and the majority of voters in this country got suckered in by Kevin07, and we lost it. Many of the same people who voted for that change would now be bleating about our retailers being overpriced. Suck it up.

    • Lisa H. says:

      06:48pm | 08/08/11

      Yeah, I get you, Bomb.
      Technically, it’s not hidden…but the PAYG earner never sees it, until he gets his little ‘present’ of a refund of his overpaid tax.

      However, for the employer, it’s yet another responsiblity, first to ultimately generate the government’s PAYG ‘cut’ of the business, and then to deliver it to the government on behalf of the nominated employee.

      A tax cut is a wage rise to the employee, and takes pressure off business.

      I feel PAYG would be a lot less ‘hidden’ if the official ‘earner’ of the money had the responsiblity of transferring it!
      Like super, PAYG becomes an area of ‘see no evil’ in the mind of the average punter, and the government is happy to have it stay that way.

      Empoyers know the full cost of running our bureacracy, though, because they see the electronic numbers transfer every month.

    • Aaron says:

      10:24am | 08/08/11

      I don’t understand how these execs are not getting it? IF you can’t get you’re products cheaper (which I highly doubt, you probably pay next to nothing for them). the you need to find a better supplier to source your products. If you’re prices come down, I will buy from you. Until then, not a chance.

    • Leo says:

      11:06am | 08/08/11

      “Myer has lost its way. It doesn’t know what it stands for. It’s not even a department store anymore. Its like an open plan shopping mall.” This is the problem. Except for the smaller Myer stores, they still look like Myer.

    • Ed says:

      11:09am | 08/08/11

      “I ask for the salmon to be grilled with steamed spinach and lemon, no salt.”

      Justin Langer’s famous assessment of Jimmy Anderson would suit you pretty well…

    • Watcher says:

      11:43am | 08/08/11

      Its not only online shoppers who are not spending in the stores, many many older Australians do not shop online and they are not buying either.  carbon Tax the flood levy, the cigarette tax, the high price of food, rising electricity, rising petrol have all taken their toll.. We do not have a bottomless well of money every week..we all are just trying to get through

    • DragonLass says:

      12:23pm | 08/08/11

      Department stores are simply doomed.  People no longer need to have all things available under one store.  They have outlived their usefulness.
      Myer will be the first to go, as they have no clear place in the market.
      DJs could probably survive if they drop some of the unprofitable stuff and just concentrate on fashion - clothes, shoes, cosmetics etc.

    • Matt says:

      04:18pm | 08/08/11

      Why would you write fiction that’s more boring than real life?

    • Pork says:

      09:28pm | 08/08/11

      YAY MATT!  Boring, pretentious tripe!

 

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