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Myer Inks Partnership with Australia Post as Online Sales Soar
Australia Post and Myer are working side by side in a three-year partnership to bolster online sales as its physical offering shrinks in size.
Myer is bolstering its online offering with its new partnership with Australia Post. The three-year contract aims to cut logistics costs and delivery times amid the online boom of 2020.
The partnership sits on top of the existing online operations that Myer is implementing.
“This partnership with Australia Post as our e-commerce fulfilment partner represents an important next step in our Customer First [turnaround] plan to deliver products to customers in the quickest and most effective way, as we continue scaling our online business during the next few years,” said John King, the CEO of Myer.
In the first ten days of Victoria’s Stage Four restrictions, Myer’s online homeware sales increased by more than 530 percent YoY. Online toy sales also soared by 450 percent, with skincare rising 430 percent.
“We are confident through this partnership, that our supply chain and logistics and warehousing solutions provided through Australia Post’s Fulfilio service, as well as our trusted Australia Post retail network, will further support Myer’s online shopping boom and assist to get customer orders out as quickly and conveniently as possible,” said Christine Holgate, the CEO of Australia Post.
The partnership not only provides Myer with the added strength for online growth, but it will also aid with extra capacity for online retail support, thanks to the 26,000 square metre Australia Post facility which can house more than 90,000 products.
“Online is expected to grow at a double-digit pace for several years,” Citigroup said in a recent report, “but this rapid increase in online penetration is in part occurring due to bricks and mortar sales growth declining at a 5.3 per cent [compound annual growth rate] from 2019 to 2023,” said King.
Online sales currently account for ten percent of total sales for Myer. CEO, John King is expecting to expand its e-commerce offering to 20 percent of total sales. This comes as the department store plans to shrink its brick-and-mortar floor space by about ten percent.