Myer report strong FY22 sales results following 34% growth in online sales

The results see Myer’s reported NPAT exceeding $60 million for FY22, a considerable increase of over 103 percent from the previous fiscal year boosted by the retailer’s best second half NPAT result since 2013.

Speaking to the challenges the brand and broader retail market faced through the pandemic over the years of 2020 and 2021, Myer Holdings CEO John King told investors on Thursday that the challenges had “created an opportunity for Myer to adapt and grow”, pointing to the considerable growth in the company’s online sales results as the prime fruits of the retailer’s labour in adapting to the challenges posed by COVID-19.

“Online continues to outperform,” King said, “The growth we are seeing means we are outpacing our peers and competitors. Our growth [in online sales] has outperformed the market by nearly 28 percent since 2018.”

“The continued investment in experience, expanded range and importantly the launch of our state of the art National Distribution Centre in FY23 will see this continue to be a strength.”

The retailer’s growth in online sales is further supported by a growth in traffic to the Myer Online website, with Myer Holdings’ reporting showing an increase of over 18 percent in visitor traffic, up to 195.4 million from 164.6 million in FY21. Conversion rates for Myer Online were also up on the year, rising to three percent from 2.7 the year before, with a 25 percent increase to unique customer numbers.

Much of the retailer’s successes, CEO John King suggests, are via its omni-channel customers. According to the Myer Holdings reporting, the retailer’s omni-channel customers spend 1.5 times more than those purchasing through a single channel on a per annum basis. These customers also shop more frequently, Myer reports, shopping with the retailer at rates 2.8 times higher than those shopping via a single channel. This reflects a trend that King also points to, saying, “[Omni-channel customers are] more loyal than our single-channel customers.”

Myer’s reported gains across the year are also buoyed further by the retailer’s loyalty program Myer One, King suggests, boasting 3.7 million members active within the last 12 months and gaining over 593 thousand new members across the year. Interestingly, King points to gains in attracting younger customers as driving the continued growth of the retailer’s loyalty program, with 55 percent of the program’s new members across FY22 coming from the 18-34 age bracket.

“We have clearly established strong digital and data credentials in recent years, evidenced by the growth in online and MYER one, however the true strength of our business is its multi-channel opportunity. The combination of our online performance and our store network returning to growth has allowed us to navigate the early challenges in the year and importantly capitalise on the new opportunities arising.”

In an early reflection of the challenges posed by the COVID-19 pandemic and economic turbulence headlined by high and rising inflation rates, Myer’s cost of doing business also rose in the reporting period, up 11.9 percent to exceed $745 million. According to CEO John King, however, the retailer is “well placed to succeed despite the uncertain economic times”.

“The pandemic taught us a number of things,” King said, “We’ve become more agile and better able to navigate the kinds of challenges that can arise.”

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