Myer has found its new CEO in former Qantas executive, Olivia Wirth, who is due to take over from outgoing chief executive John King when he departs the retail giant in June.

It's a two-stepped approach, with Wirth first due to take over as chairman of the board, replacing Ari Mervis, who steps down from the board with immediate effect only months after his November appointment.

“The Board’s appointment of Olivia as Executive Chair is the start of a new era for Myer. Olivia is an experienced and respected leader, with a track record of delivering improved business performance. She transformed Qantas Loyalty into one of Australia’s most successful customer engagement and omni-retail businesses," said Mervis.

"“Since joining the Board last year, Olivia has demonstrated impressive commercial acumen and an acute understanding of the dynamics facing both Myer and the broader retail sector. It is the Board’s view that Olivia is the ideal person to lead Myer as it accelerates the work undertaken in recent years to stabilise and strengthen the business."

The Myer Executive Management Group will report to Wirth under the new governance structure, as she assumes her her role as Chair effective immediately, with King to oversee a smooth transition up until she takes on the CEO and Executive Chair responsibility from 4 June 2024.

Other changes to the executive leadership include the appointment of Gary Weiss as Deputy Chair and Lead Independent Director, while Myer’s Executive General Manager Stores, Tony Sutton, has been promoted to Chief Operating Officer.

“Olivia’s appointment is a great outcome for Myer’s customers, team members, brand partners and shareholders. I have worked closely with Olivia since she joined the Board and I have been deeply impressed with her hands-on approach, commitment to our loyal customers and support for the team. I believe Myer has an exciting future with the Board’s appointment of Olivia as Executive Chair," said King. “I am proud of what we’ve achieved in my six years as CEO and Managing Director. We have transitioned Myer into a stronger and more profitable business, culminating in last year’s strong financial performance, which included the best sales result in almost two decades. It has been a privilege to lead one of Australia’s highest profile companies and I am committed to providing a smooth transition to Olivia to ensure we maintain momentum in delivering our Customer First Plan.”

As reported in Mi3, Wirth stepped down from her Qantas Loyalty CEO role last October and joined Myer as a non-exec director shortly after. Wirth said her immediate priorities would be to ensure Myer is "delivering a great in-store experience with a world-class range and best-in-class customer service, while investing in e-commerce and harnessing loyalty and partnerships among our customers and suppliers. I want to thank both Ari and John for their service to Myer and support".

"John has led the team with distinction and stabilised the business during some very challenging times, especially the COVID-19 period. Over the coming weeks, I will be meeting with the team and our loyal customers to hear from them first-hand about their needs and gathering their feedback on our growth plans," she said.

During today's half-yearly presentation call, King was challenged on the unorthodox structure and why Wirth didn't immediately become CEO, with one analyst commenting that while there's no doubting Wirth's merit, it was contrary to ASX governance practices to have an exec chair when it should be independent.

"The board felt this was appropriate structure for our business at this time. It’s the reason why we have Gary [Weiss] as deputy chair and as a lead independent director. It’s a structure known in other parts of the world, the board felt this was the most appropriate structure for continuity," king replied. "An executive chair can hit the ground running over the next few months while I hand over. We think it’s the most appropriate way of transitioning the business for the next phase."

Asked then if Mervis was supportive of the move King replied, “Yes”.