Myer’s omnichannel sales increased by 74 percent and profit is growing at a faster rate than sales, announced in the company’s FY2016 results.
Myer launched its FY2016 full year results today, announcing an improvement in sales growth, around 3 percent, and a net profit of $69.3 million, in line with guidance.
“There is no doubt that as a result of our strategy, Myer is a measurably stronger business today than it was a year ago,” Myer chief executive Richard Umbers said.
When Myer launched its new strategy in September last year, it promised to ‘find wonderful’ following an ordinary year. The strategy had a strong focus on delivering market-leading omnichannel capability, amongst other initiatives like improving the in-store customer experience and re-energising the product range.
Umbers announced that customers are responding positively to New Myer’s digital strategy with omni-channel sales increasing by 74 percent and profit growing at a faster rate than sales.
Productivity improvements in order fulfillment have reduced omnichannel cost of doing business (CODB) by 25 percent, while click and collect now represents nine percent of omnichannel sales for the company. The Myer online store saw 60 million visits in the past year; the improved pathway to purchase experience leading to a 33% improvement in conversion.
“Our commitment to improving productivity has led to a reduction in operating costs, and we remain focused on re-shaping our store footprint, and investing in stores that align with our core customers,” said Umbers.
Technology improvements such as the shoe finder app, have enhanced the in-store customer experience; Myer sales have increased by 117 percent with the addition of 2,500 iPads in-store. The retail giant also took the reigns launching the world’s first virtual reality department store with Ebay.
Myer came in at number 13 in Power Retail’s 2016 Top 100 and was Australia’s top-ranked department store.
Myer is 12 months in to its five-year strategy to ramp sales growth to more than three percent a year. “We still have a long way to go but we are moving in the right direction. In the first 12 months we have made a number of critical investments to build a solid foundation from which we will continue to execute the strategy,” said Umbers.