Myer's incoming chairman has doubled down in support of the under-siege department store's turnaround strategy and board, saying his own investment of half a million shares proves his conviction that the company is on the right track.
Garry Hounsell, who will stand for election as chairman at Myer's annual general meeting on November 24, said the "New Myer" turnaround plan was the right strategy for the company and that Myer's board and management had the right skills and capability to deliver the plan.
"My recent purchase of 500,000 shares in the company is a reflection of my conviction," Mr Hounsell said in a letter to shareholders accompanying a notification of its AGM.
Mr Hounsell's comments follow criticism from Myer's biggest shareholder, Solomon Lew's Premier Investments, which snapped up 10.8 per cent of the company's stock in March.
Mr Lew, a retail veteran whose company runs the successful Smiggle and Just Group brands, has since described Myer as a "basket case" with not enough retail experience on its board and is set to vote against Mr Hounsell's appointment's at next month's AGM.
Mr Hounsell is an experienced company director who most recently led Spotless during a takeover battle with Downer EDI, but has not worked in retail.
Premier is also set to vote against the election of Julie Ann Morrison, who was appointed to the board last week after spending about 18 months as a director on its subsidiary board.
Myer is two years into its five-year, "New Myer" turnaround plan, which has come under scrutiny after falling short of key performance targets including sales growth and improving sales per square metre.
But Mr Hounsell said on Monday he was "convinced that the New Myer strategy is the right one", and that Myer had the right strategy, the right boardroom and management skills, and a unified focus on delivering shareholder value.
"Analysis of Myer's results relative to others in the apparel sector demonstrates the strategy is working, but it is a difficult environment and in my experience transformation takes time," he said.
"You may have read recent criticisms of Myer in the media. As your incoming chairman, I would encourage you to visit our stores and shop online to see for yourselves how New Myer is being delivered."
Last week Premier demanded that Myer release its quarterly sales data at a strategy day on November 1 to substantiate Mr Hounsell's claims that there are "green shoots" in Myer's performance.
Myer last month handed down a $11.9 million profit for 2017 - its worst result since listing on the ASX in 2009 - while its shares have fallen more than 46 per cent since January, after it shocked the market by downgrading its earnings guidance.
The retailer on Monday said its executives would receive none of their short-term bonuses because they had failed to grow Myer's net profit after tax.
Chief executive Richard Umbers still took home a $1.18 million cash salary and his total remuneration including some long-term benefits was $1.7 million, down from $1.89 million a year earlier, the company's annual report shows.
Daniel Bracken, Myer's second in charge who unexpectedly left the company in July, received $1.08 million.
