Myer is one of the biggest retailers of cosmetics and beauty in the country, but the department store chain wants more. Following strong demand for cosmetics and fragrances, the company is chasing the milestone figure of $1 billion in online sales.
The target is on the money. For its first half FY23, Myer has announced total sales of $1.88 billion – up 24.2 per cent.
Profits also more than doubled over the period to $65 million – an increase of 101.4 per cent, Myer’s strongest net profit result since H1 2014.
Overall online sales dropped 9.8 per cent during the first half of the fiscal year as consumers flocked back to stores. But the e-commerce channel posted a three-year compound growth rate of 31. 5 per cent to $382.3 million for the period to keep Myer’s e-commerce ambitions in reach.
Myer’s CBD stores were crucial to the record results. Pre and post-Christmas in-store sales remained strong to push bricks-and-mortar revenues up 53.7 per cent in H1 FY23.
John King, CEO of Myer, was justifiably proud of the company’s turnaround. “Our omnichannel offer is strong, we continue to invest in MYER one, one of the country’s most effective retail loyalty programs, and we have also demonstrated our ability to capitalise on customers returning to stores and CBD locations through a targeted program of store space optimisation, a stronger merchandise offer, key refurbishments and improved customer service.”
MYER one has become one of the backbones of the company’s performance with an active membership of 4.1 million. Sign-ups were up 36.1 per cent as Myer continues to enlarge its stable of membership partners.
The department store major inked a new partnership with American Express in early March. “Partnerships across CommBank, Virgin and American Express continue to deepen the value offered to customers and in turn will provide greater revenue and growth opportunities for our business”, added King.
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