An announcement of a long-term process to revitalise Myer Holdings Ltd (ASX: MYR) wasn't what shareholders wanted to hear yesterday, with shares in the retailer dropping from $1.90 to $1.65 after yesterday's market update.
Unfortunately it appears there is no quick turnaround in sight either, with management warning shareholders that 'a transformation project of the scale required to achieve the Board's vision will take a number of years to implement.'
You won't hear any argument from me, as I've written previously about the struggle Myer faces, and fellow contributor Andrew Mudie did an excellent job yesterday summing up Myer's lacklustre long-term performance.
The sudden departure of the CEO and CFO (Chief Financial Officer) yesterday may have caused some additional concern for shareholders.
The CFO, Mark Ashby, resigned after a seven-year stint in order to take up an opportunity in the United States. He will assist during a comprehensive handover while a new CFO is found.
As to the Chief Executive, management stated that the company's long-term transformation had reached a 'tipping point', and that it was an appropriate time for a new CEO to take over the reins.
Mr Richard Umbers, former Chief Information and Supply Chain Officer, has been appointed CEO and Managing Director, effective immediately. Former CEO Bernie Brookes will remain for a two-month transitional period.
While it is good to see management promote from within, I question whether an individual from the same corporation will have the diversity of experience that will be required to rejuvenate Myer.
After all, Mr Brookes did a solid job during his time at the helm, with a number of improvements including the addition of online retailing.
I simply don't know if 'more of the same', including a continued focus on its unique fashion line, is what Myer shareholders really need.
Here's hoping that new CEO Richard Umbers really is the 'contemporary retailer with the clear ability to reshape Myer in a new retail landscape' management has touted him as.
