You have to admire those willing to try new things. On that note, investors should be encouraged that Myer Holdings Ltd (ASX: MYR) is willing to explore new concepts to compete against the online revolution that is disrupting brick and mortar retailers.
Myer struck a partnership with Litmus Labs that will see the lifestyle technology company set-up shop into four of Myer's flagship stores in Melbourne, Sydney and Brisbane, according to the Australian Financial Review.
The news wasn't enough to move the Myer share price with the stock closing flat at 54 cents when the S&P/ASX 200 (Index:^AXJO) (ASX:XJO) index lost 0.2% today.
However, the MYR share price is among the better performing listed retailers over the past 12 months with a gain of around 30%, which is more than the 22% increase in the JB Hi-Fi Limited (ASX: JBH) share price, the 11% rise in the Super Retail Group Ltd (ASX: SUL) share price and the 6% drop in the Premier Investments Limited (ASX: PMV) share price.
Myer enhancing the in-store experience
Myer shareholders will be hoping that the department store's latest strategy to lure shoppers through its doors and away from online portals will pay off.
Litmus Labs is an experiential retailer that allows customers to test innovative tech products from leading manufacturers who produce things like digital picture frames and canvases, electric skateboards and scooters, headphones and speakers and smart pens.
This collaboration is the first of its kind for a department store in Australia and it comes nine months after Litmus Labs opened its first concept store in GPT Group's (ASX: GPT) Melbourne Central shopping mall.
Can Myer increase sales productivity?
It's believed that Litmus Labs has helped Melbourne Central dethrone Mirvac Group's (ASX: MGR) Broadway Shopping Centre in Sydney to become Australia's highest sales per square meter shopping centre as Melbourne Central's sales productivity increased 10% earlier this year, reported the AFR.
"This exciting department store first partnership will ensure Myer is the lifestyle destination for our customers," said Myer's general manager home and entertainment, Dean Austin.
"We will offer our customers an endless aisle of innovation with products, many of which you can't purchase anywhere else in Australia."
Myer is in the midst of a turnaround as it struggles against cheaper online competitors like Amazon.com, Inc. while being locked into expensive leases.
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