Myer bounces back to profitability, names new chair

Department store Myer has enjoyed the fruits of a rebounding retail environment in FY21, with total sales up 5.5 per cent to $2.65 billion – 20 per cent of which were made online – leading to a statutory net profit figure of $46.4 million.

Myer’s profit is a strong improvement on the $172.4 million deficit the business suffered in FY20, as the initial shock of Covid-19 hurt customer and business confidence.

The result, according to CEO John King, is due to the business’ ability to thrive despite the extraordinary market conditions, and a continued focus on its online channel.

“As we have continually said over the past three years, our focus has been on profitable sales, growing the online business, disciplined management of costs, cash, and inventory, space optimisation, and the deleveraging of our balance sheet,” King said.

“The successful execution of these, and many more strategic initiatives, has delivered solid growth across all our key metrics in FY21.”

The business’ Myer One loyalty program has also been a solid driver of customer spending, and throughout the year Myer hit record levels of customer satisfaction in store and net promotor scores online.

And, in the year ahead, the department store expects to further grow its focus on online, re-engage its core customer, accelerate factory-to-consumer shipping, and further reduce costs and rationalise its property holdings by exiting, or downsizing, unprofitable stores.

“The business is well placed ahead of the upcoming peak trading period, and the team are focused on remaining agile in response to the various State-based lockdowns and travel restrictions,” King said.

Amid the results, Myer also announced that acting-chair JoAnne Stephenson would be stepping up to take on the role permanently effective today, and that Ari Mervis would join the board as a non-executive director from the 20 September.

The post Myer bounces back to profitability, names new chair appeared first on Inside Retail.