Three key takeaways from Myer’s full-year results

ed to comment on the rumoured talks of a merger between the retailer and its upmarket rival David Jones, he provided further insights into the progress he has made on the company’s “customer first” turnaround plan. 

Here are three key takeaways from the call. 

Myer is on track to reach $1 billion in online sales 

Nearly a quarter of Myer’s total sales, or $722.8 million, were made online in FY22. This represents a 34 per cent year-on-year increase from FY21, indicating the retailer is well on its way to reaching its target of doing $1 billion in online sales. But KIng believes these figures fail to capture the true extent of Myer’s online business. 

“The facts behind our online business are sometimes lost in the coverage of the day, but the growth we are seeing means we are outpacing our peers and competitors,” he said. “We are now one of the largest online general merchandise retailers in the country.”

He noted that the pace of growth Myer is seeing online is outpacing David Jones, as well as online-only marketplaces, including Kogan and Catch. 

“When you look at our category level, when compared to specialist retailers […] if you take our home category, which has grown at 53 per cent in FY22, this has well surpassed the growth of pureplays like Temple & Webster at 31 per cent […] and when you look at our beauty category, our 17 per cent interest continues to outpace pureplays like Adore Beauty who grew at 11 per cent.” 

He believes the growth of Myer’s digital business will continue in the years ahead, thanks to a number of key initiatives, including the upcoming launch of a national distribution centre.

The Myer One loyalty program is picking up steam 

Nearly 600,000 people joined Myer’s loyalty program, Myer One, in FY22, bringing the total number of contactable members to 6.6 million. And more than half of the new sign-ups were in the key 18-34 age group.

Noting that Myer One members spend 83 per cent than non-members, King stressed the importance of the program on the investor call. 

“First-party data is incredibly important in today’s marketplace, and we have reaped the benefits from our Myer One program, with over 71 per cent of all purchasers using the Myer One card, our highest on record since publicly listing in 2009,” he said. 

“It is that compelling foundation for our business and one that will continue to underpin growth for our business, as we leverage better insights to inform better business decisions by us, deliver greater insight and support for our business partners, provide a strong and actionable database to commercialise further and importantly, maintain and deepen the connection with our most loyal customers.”