MyDeal Reports Stable Annual Growth, Share Price Remains Rocky

Power Retail By Power Retail | 27 Jul 2021

MyDeal is placing itself ‘fairly and squarely’ and is ‘growing significantly faster’ than the online marketplace landscape, as it reports a 12.4 percent increase in its Gross Sales. 

The online retailer is reporting revenue of $.7 million for Q4, up 40.3 percent on PCP, and  ‘record’ annual gross sales of $218.1 million, up 111.1 percent.

“MyDeal continues to cement its position as one of Australia’s leading online retail marketplaces for home and lifestyle products by again growing significantly faster than the industry average to deliver a record fourth quarter,” explained Sean Senvirtne, the CEO of MyDeal.

“We have positioned ourselves fairly and squarely on the shopping list of Australian consumers and are well placed to capture the increased demand for online shopping. This is evident in our growing customer base of almost one million active shoppers, and the proportion of shoppers that enjoy t Rehe MyDeal experience and return to shop with us. This year, our platform generated more than $218 million in Gross Sales – the strongest result in the Company’s ten-year history.”

Senvirtne commented on the increase of returning customers, which has risen from 59.4 percent of all transactions, up from 44.8 percent. “It’s exciting to see the growth in transactions from returning customers, which proves that MyDeal resonates with Australian shoppers searching for a quality experience when shopping online, and our strategy of offering great home and lifestyle products and brands at great value is delivering continued growth,” Senvirtne said.

The retailer launched an app on iOS and Android in early May this year, which is “showing good early signs” with roughly seven percent of shoppers using the app. “Contributing to our success was the implementation of a key strategic milestone, the native iOS and Android MyDeal mobile apps,” Senvirtne said. “With high ratings, high utilisation and improved customer conversion, we will continue to further optimise the app for growth in the years ahead.”

Its Active Customer Base has grown at a steady pace, reaching 894,225 as of Q4 – this is up 83.1 per cent on PCP. Additionally, MyDeal’s private label brand s accumulating $8.8 million in annual Gross Sales – the retailer reported $2.3 million in sales for Q4, up from $0.3 million on PCP. Its cash flow remains strong at $42.7 million, as of June 30 2021.

“E-commerce remains significantly underpenetrated in our core furniture, homewares and lifestyle categories, and we see strong opportunity to attract new customers to the platform as Australian’s transition to online shopping more often and become more aware of the MyDeal brand and proposition,” explained Senvirtne. “With a best in class team now in place, a loyal base of nearly one million active customers and a strong level of repeat transactions, we are well-positioned to continue to grow. The focus in FY22 will be on using our proprietary technology advantage to deliver further personalisation and app engagement.”

The retailer has also appointed Ryvalmedia as its SEM and performance media agency, Mumbrella reported. Ryvalmedia will work alongside the retailer with ‘with scope for data, technology, and analytics project work’.

“Working alongside them and advancing their technology and media performance processes, with the collective ambition to be at the forefront of consumer experience in e-commerce, is an experience in itself,” said Joseph Pardillo, the Managing Director of Ryvlmedia. “Their exciting roadmap of growth and opportunities, including expanding their own private label business, positions the MyDeal business well in a sector that is seeing accelerated growth.”

Ryan Gracie, MyDeal’s recently appointed CMO (the first appointed role for MyDeal), explained that this move was the best for the retailer moving forward. “SEM is a major revenue driver for our business, and I am highly confident that we have placed this vital channel into the most capable hands in the country,” he said.

MyDeal’s current share price remains somewhat rocky despite these increases in reported figures. At the time of writing, its share price is $0.63 and has dipped 3.1 percent over the last five days. Find out how the ASX-listed e-commerce retailers are shaping up against each other in the weekly edition of THE YIELD. 

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