Myer, Australia’s largest department store group, released their full-year financial report, and numbers show that customer loyalty and online sales in particular have helped drive profit, although there were some challenges overall.
Total sales for the retailer were $3.14 billion for the year closing on July 26. This is up just 1.2% on similar store sales for a year-to-year basis. Net profits fell 22.6% year-on-year to $98.5 million.
A large contributor to sales was the Myer one customer loyalty program, with $2.16 billion in sales over the year coming in around 70%, according to the study. In addition, Myer issued more than $50 million in rewards cards; average spend on redemption was a record 4 times the card value.
So what did Myer do this year to focus on customer engagement, which drove much of its bottom line as a priority in the “Five Point Plan”?
The retailer worked to engage and retain their 3000 platinum members to much success, and they also saw continued growth in their Myer Wine Club sales and membership. In addition, they improved customer service, enabling staff to spend more time with customers, providing more in-store and theatre experiences, as well as providing an online booking system for personal shopping and in-store services. Myer’s ‘feedback ASAP’ digital customer support program was also a success – exceeding over 42,000 interactions over the 12-month period.
Omni-channel was also a priority for the retailer this year and Myer worked in various ways to optimize their reach. For example, the retailer rolled out 1400 iPads to all stores for both customers and in-store staff to utilize, and expanded the in-house digital team to support marketing and omni-channel products. The retailer said 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.
And although sales overall were flat, online sales saw growth— transactions doubled in this area over the past year. Website visits were up 74% to more than 38 million visits in FY14. Sales via mobile and tablet devices continue to increase.
2015 plans still center on the customer, with a new CRM system for the Myer one program, and building out the exclusive brands portfolio.