Myer reports quarterly sales drop, sharpens online focus
Myer has reported a 2.8 per cent fall in first quarter sales to $699 million at its highly anticipated strategy day today.
Comparable store sales were down 2.1 per cent, but sales per square metre rose 3.6 per cent, following the recent closure of several Myer department stores.
Meanwhile, online sales grew 67.8 per cent on the previous corresponding period, according to Myer chief executive Richard Umbers.
“All of Myer’s metrics in digital and online and moving strongly in the right direction,” he said.
“Sales, profitability, click and collect take up, website traffic and conversion are all increasing. Cost of fulfillment and fulfillment times are falling. Building on the strength of the business is a key focus going forward.”
Umbers also announced the launch of Myer’s online marketplace in an effort to extend its offering and bolster digital credentials ahead of the launch of Amazon in Australia.
“Today we signalled a heightened focus on the growth of our very successful omnichannel business as well as experiential retail to create inspiring destinations,” Umbers said.
“We also highlighted the importance of our Myer One program and the increasing use of customer data to personalise our offer, both in terms of range and services in store and through marketing activity.
Myer released the figures in a brief trading update to the Australian Securities Exchange along with a briefing to update investors on its strategy.
Its largest shareholder – Solomon Lew’s Premier Investments – has repeatedly and publicly urged the department store to release its first quarter sales figures in the interest of transparency.
Myer also announced the acceleration of new retail concepts to be introduced across its store network including six new food partners, five upgraded food offers and 12 locations for new beauty and grooming services.