The PAS Group highlights customer data platform for better engagement in a mixed FY19

ASX-listed retail and wholesale apparel group highlights online revenue increases off the back of its recent investment into a CDP

ASX-listed retail apparel group, The PAS Group, has attributed a 45 per cent increase in online revenue from email marketing efforts to its recent customer data platform investment.

The company detailed the result in its latest full-year financial report, released to market today. The retail group, which owns brands such as Review, Yarra Trail, Black Pepper, JET, Marco Polo, Designworks and White Runway, reported total full-year sales were up 9.2 per cent to $272.6 million, driven by 29.7 per cent growth in its wholesale business to $148.6 million. This included a 46 per cent year-on-year lift in net sales across the Designworks business.

However, underlying EBITDA was down $3.1 million to $8.6 million, and the group reported a total net loss of $1.8 million, albeit an improved result against the $2.9 million loss confirmed in FY18.

On the retail side, The PAS Group reported an 8.2 per cent drop to $124 million, noting closure of 25 marginal or unprofitable stores over the past year. Like-for-like retail sales were also down 4.1 per cent.

Helping keep customer growth in focus has been a recent investment into a CDP, which went live in the first half of FY19. According to the financial report, this delivered annual membership growth of 37 per cent across loyalty programs, bringing total membership to 1.3 million. This customer group now represents 78 per cent of total retail sales.

As previously reported in CMO, The PAS Group brought on Lexer’s CDP offering and has set up more than 25 attributes for each of its customers, which it’s using to tailor and suppress campaigns.

The PAS Group said online revenue from email campaigns increased 45 per cent thanks to the CDP providing more personalised communications. In total, The PAS Group’s total online sales growth came in at 5.7 per cent in FY19, following 17.2 per cent growth in FY18, and bringing online as a percentage of total sales to 14.5 per cent.

Over the past year, the group also debuted a new loyalty program for its Black Pepper brand, and upgraded its Review loyalty app, growing this revenue channel by 51 per cent year-on-year as a result. Another loyalty highlight was 73 per cent growth in the Review VIP Dress Circle membership for top-tier members since launch, driving $4.8 million in sales.

The company said new features and benefits continue to be introduced across all loyalty programs with the goal of growing top customer participation and encouraging new customer engagement. On the list include further targeted and segmented communications, capitalising on the recent launch of an Android-based Review mobile app, and ongoing emphasis on mobile loyalty.

“In what has been a particularly challenging year for the retail apparel market, we offset some of the impact of software sales in our own stores and department store concessions with growth in our online and Designworks businesses,” the PAS Group outgoing CEO, Eric Morris, said in a statement.

“We continued to execute with a disciplined approach to cost and working capital management, while making further progress in implementing our strategic growth plans.”

The group is also looking to divest its White Runway business, pulled back on its new store rollouts, is building out infrastructure to grow JET internationally, and working with Houlihan Lokey on reviewing strategic opportunities to further transform the business.

“Meanwhile we closed the year debt free and are well placed to capitalise on any opportunities that would create value for our shareholders,” Morris added.

Follow CMO on Twitter: @CMOAustralia, take part in the CMO conversation on LinkedIn: CMO ANZ, follow our regular updates via CMO Australia's Linkedin company page, or join us on Facebook: https://www.facebook.com/CMOAustralia.     

Join the newsletter!

Or

Sign up to gain exclusive access to email subscriptions, event invitations, competitions, giveaways, and much more.

Membership is free, and your security and privacy remain protected. View our privacy policy before signing up.

Error: Please check your email address.
Show Comments

Latest Videos

Launch marketing council Episode 5: Retailer and supplier

In our fifth and final episode, we delve into the relationship between retailer and supplier and how it drives and influences launch marketing strategies and success. To do that, we’re joined by Campbell Davies, group general manager of Associated Retailers Limited, and Kristin Viccars, marketing director A/NZ, Apex Tool Group. Also featured are Five by Five Global managing director, Matt Lawton, and CMO’s Nadia Cameron.

More Videos

Great read. I agree that it should be a perfect balance between interacting with your customers and knowing your brand. As a business, yo...

Caroline Scott

7 ways CMOs can improve their customer engagement game

Read more

Very true. Team development helps improve collaboration among the team members. I was able to improve my team's collaboration skills by t...

Quent Sinder

Why empowering others can help make you a great leader

Read more

CRM is a very good software that can help you succeed in your business. In my company, this system has allowed me to improve customer rel...

Anna Janicka

Sensis rebrands to Thryv and brings business software to Australian SMBs

Read more

AI Leasing Assistants have finally arrived for the multifamily industry. With so many to choose from it can be hard to figure out which i...

Alice Labs Pte. Ltd.

CMO's top 8 martech stories for the week - 6 May 2021

Read more

Nowadays, when everything is being done online, it is good to know that someone is trying to make an improvement. As a company, you are o...

Marcus

10 lessons Telstra has learnt through its T22 transformation

Read more

Blog Posts

Why if marketing is all you do, you’ll never be very good at it

OK, so you’re probably thinking: “Here comes another article to badger me about living in my bubble.” And also, “I bet this bubble-bashing piece will go on to explain how I can achieve better results through some heady dose of new life experiences, new routines and annoyingly different opinions on social media.”

Dane Smith

Behavioural science lead and regional consulting partner, Ogilvy

A leader’s role in rebuilding a culture of confidence

Every day, there are new predictions and studies on the future of work, the state of the economy and the unfolding global pandemic. All of which creates uncertainty and heightens the imperative of effective leadership.

Michelle Gibbings

Workplace expert, author

Confused About Your Customers?​

​I've worked in brand and marketing for more than 20 years. But there’s one area where I’ve found myself going around in circles and I must admit I'm becoming increasingly confused.

Rich Curtis

CEO, FutureBrand A/NZ

Sign in