Myer is reporting strong online sales growth, despite total sales dropping by 13.1 percent in its HY results for FY21.
The retailer cited the store closures across Melbourne as one of the catalysts for the slump in total sales, which dropped to $1,398 million. Furthermore, EBITDA is down 1.7 percent to $214.6 million, with EBIT increasing by 2.7 percent.
Operating Gross Profit is also down by 14.3 percent to $539.8 million, with inventory 22 percent lower YoY to $256.8 million.
CODB decreased by 20.09 percent, which reflects the cost mitigation activities throughout HY1, This includes JobKeeper wage subsidiary of $32 million and rent and outgoing wavers of $18 million.
Net profit has increased by 8.4 percent to $42.9 million, with statutory profit after tax up 76.3 percent.
The Group Online sales for Myer have increased by 71 percent to $287.6 million, with Group Online Sales making up 21 percent of the mix in HY1, up 100 percent YoY.
The retailer has reported an improved online checkout, which has led to an increase in conversion of 81bps.
The key categories that experienced an uplift online include Beauty which skyrocketed in popularity, growing 129 percent YoY. Furthermore, Homeware sales grew by 116 percent YoY online.
The retailer’s NPS has increased to its highest ever level for HY1 results, John King, CEO of Myer Group, reported.
“Online continues to grow at record levels, now representing 21 percent of our business int he first half. This is double what it was a year ago,” said King.
Myer reported the opening of 3PL, with over 800,000 units and 45,000 SKUs in the facility. “We’re continuing to grow online,” King explained. The 3PL has fulfilled ‘over a million units on the new site’ and has plans to expand its SKUS and unit capacity.
“Put simply, this is a more efficient process for us, with 25 percent of all online units fulfilled with 3PL in Q2,” he said. “It means, importantly, a better, faster online experience for our customers, with significant efficiencies for the business.”
The online profit contribution from Myer will drive further improvements through a ‘more effective’ media investment profile. Furthermore, Myer plans to expand its digital offering and make it a ‘focus of future investment’.
Myer’s loyalty program, Myer One, has also experienced significant growth over HY1. The retailer has ‘deepened’ the engagement with the loyalty program, introducing $10 reward cards, with more than one million more members earning rewards in the first half of FY21.
Furthermore, Myer One sales improved to 69.2 percent of total sales at the end o fHY1, up 410bps. Its online tag rate has also increased by 21 percent YoY.
Despite the growing online popularity of the retailer, Myer doesn’t expect online sales to have the same momentum throughout the rest of 2021.
“We don’t anticipate online growth to be at the same levels in the second half as we experienced during last year’s lockdown – particularly in April and May,” said King. “However, we do expect continued growth as this channel continues to gain momentum as we build range and choice for our customers, and operational efficiencies.”
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