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Myer’s Total Sales Slip, Online Comes Out On Top
Myer has reported a slip in total sales in the last financial year, with online sales soaring amid the pandemic.
Total sales dropped 15.8 percent, which comes as stores closed throughout the country as a result of the global pandemic, with CEO John King calling it ‘one of the toughest decisions’ in the retailer’s history.
“The decision taken in March 2020 to temporarily close all 60 stores and stand down approximately 10,000 team members was one of the toughest decisions Myer has faced in its 120 years of operation. All stores were closed for the majority of April and May,” he explained.
The Group has slipped into the red with a net loss of $172 million, as a result of the COVID-19 store closures and regulations.
Despite the closures of its stores and the reduction in total sales, its online offering grew exponentially. The Group’s online sales were up 1.1 percent to $422.5 million, representing 17 percent of total sales.
“Online sales grew by 98.8 percent in 2H20 compared to the prior year and there was particularly strong growth in Beauty, up 218 percent and Homewares up 177 percent,” King explained.
“During the past two years, Myer has undertaken significant improvements to the website including enhancing infrastructure and peak capacity and improved search and check out functionality. Together with improved fulfilment, these enhancements have underpinned the significant growth in sales as well as a 50 basis point improvement in conversion, and an improved gross profit for the online channel.”
A few weeks ago, Myer and Australia Post inked a three-year partnership to help bolster the department’s store online offering.
“In August 2020, Myer announced it had entered into a multi-year agreement with Australia Post to provide warehousing and online fulfilment services, to further enhance the Company’s ability to provide an efficient and fast online experience for customers. These new warehouse and fulfilment arrangements will underpin the next stage of growth in Myer’s online business, to further strengthen the fulfilment capacity and improve efficiency, delivering benefits to Myer’s customers as well as providing significant cost savings,” King said.
In the report, the Group has explained its accelerated priorities for its Customer First Plan includes the transformation of its customer experience online, accelerating cost reduction, and enhancing its ‘Only at Myer’ brands.
“While the Customer First Plan remains the right plan, it has been adapted for the current operating environment and to ensure Myer can capitalise on all available opportunities as restrictions are eased,” King finished.