Myer full-year results: Loyalty program, online sales bright spots but profits slide

Department store sees net profits slide by 22 per cent in its full-year 2014 financial results but expects stronger year in 2015 thanks to omni-channel, customer engagement efforts

Myer has highlighted stronger customer loyalty and engagement, as well as online sales, as high points in a challenging financial year full of investment, flat sales and falling profits.

Myer reported total sales of $3.14 billion for the year to 26 July, up just 1.2 per cent on comparable store sales basis year-on-year. EBITDA was down 17 per cent compared to FY13 to $253m, while net profits fell 22.6 per cent year-on-year to $98.5 million.

According to the department store’s full-year financial report, the Myer one customer loyalty program was again a big contributor to sales, representing $2.16bn in sales over the 12-month period, or just shy of 70 per cent. During the year, Myer issued more than $50 million in rewards cards, with average spend on redemption a record four times card value.

The retailer said it had also seen “pleasing” results from its engagement and retention strategy for its 3000 platinum members, which launched during the FY13 year, along with continued growth in the Myer Wine Club sales and membership.

“[The loyalty program is an] effective analysis tool providing valuable insights into customer preferences,” Myer stated in the financial report.

Report: Myer’s FY13 results

Myer claimed improved customer services results and a higher Net Promoter Score were also achieved in the past year. Contributing factors included process efficiencies enabling staff to spend more time with customers; a rise in in-store and theatre experiences; and an online booking system for personal shopping and in-store services.

The retailer also noted interactions with its ‘feedback ASAP’ digital customer support program exceeded 42,000 over the 12-month period.

Despite the flat overall result online sales was an area of growth, and Myer said transactions doubled in this area over the past year. Website visits were up 74 per cent to more than 38 million visits in FY14, while sales via mobile and tablet devices continue to increase.

Core to this result was Myer’s enhanced omni-channel offering and the stability, functionality and fulfilment improvements made over the past year. New capabilities include ‘click and collect’ in all stores, as well as iPads for staff in-store. Myer is currently rolling out 1400 iPads to all stores to provide an expanded range of products to customers and give in-store staff a new sales channel, information and order capability.

Another notable change has been expanding the in-house digital team to support marketing and omni-channel projects. This team is now focused on providing content online to further improve customer engagement. The retailer noted that it has 2.2 million email addresses and 3.7 million mobile numbers, along with 317,000 Facebook followers and 71,000 Instagram followers.

Myer CEO, Bernie Brookes, acknowledged the challenging conditions of the past year but said he looked forward to a stronger FY15. He highlighted the new-look management team, which includes recently appointed chief marketing and merchandise officer, Daniel Bracken, as a key driver for better results in the next 12 months.

“As expected, our investments in the business during the year adversely affected profitability, however we look forward to the benefits beginning to be realised in FY2015,” Brookes stated.

Initiatives planned in 2015 include implementing a new CRM system for the Myer one program, as well as a continued focus on building the retailer’s exclusive brands portfolio.

Follow CMO on Twitter: @CMOAustralia, take part in the CMO Australia conversation on LinkedIn: CMO Australia, join us on Facebook: https://www.facebook.com/CMOAustralia, or check us out on Google+: google.com/+CmoAu

Signup to CMO’s email newsletter to receive your weekly dose of targeted content for the modern marketing chief.

Join the CMO newsletter!

Error: Please check your email address.
Show Comments

Supporting Association

Blog Posts

Disruption Down Under – What’s Amazon’s real competitive advantage?

Savvy shoppers wait in anticipation, while Australian retailers are gearing up for the onslaught. Amazon’s arrival is imminent.

Change across the board: Why boards need to digitally evolve

Traditionally the non-executive board of a company acts in an advisory capacity - attending monthly board meetings to offer overarching advice and guidance typically focusing on:

Jodie Sangster

CEO, ADMA

The most desirable customers you’ve overlooked

“What will really move the needle?” This is a question that keeps leaders awake at night. And at the intersection of some of their top priorities – finding pockets of growth, redefining the customer experience, and making an emotional impact – lies a latent market: Their diverse customers.

Really inspiring !

Goldenboy Media

Jaywing sets sights on Australian growth with digital and data-driven agency model

Read more

Being aware of regulations or guidlines is just the start. As our CEO Emma Lo Russo stated exactly two weeks ago at an event we supported...

Alan Smith

​Are the Wild West days of influencer collaboration over?

Read more

Rebranding is always nice solution to get better organisation. Businessman may apply certain special services (for example, https://www.l...

David Hill

CMO interview: Spearheading the global rebranding of OFX

Read more

Thank you so much for sharing this article.Top Digital Marketing company in Bangalore

Way To DM

Predictions: 17 digital marketing trends for 2017

Read more

Thanks for the great article Jodie, agree many boards and senior execs are operating in outdated modes, just as we need some reverse soci...

sharyn

Change across the board: Why boards need to digitally evolve - Data-driven marketing - CMO Australia

Read more

Latest Podcast

More podcasts

Sign in