Myer has released its full year 2019 results, reporting that despite a decline in total sales the digital sales for the business increased by 21.9% to $292.1 million.
While total sales declined by 3.5% to $2,991.8 million compared to $3,100.6 million in 2018, the digital sales – which comprise of online sales and sales via in-store iPads – now represent the largest store in the business and make up 9.8% of total sales.
The business also reported that comparable store sales declined by 1.3% in 2019, however the cost of doing business improved by 3.1% to $1,002.4 million compared to $1,035.0 million in 2018.
Myer CEO and MD John King cited store improvements and closures and the Customer First Plan as reasons for the results.
"This result demonstrates our focus on profitable sales, a disciplined management of costs and cash, as well as deleveraging the business.
"In the first year of the Customer First Plan, we have progressed a number of strategic initiatives, but recognise there is much more to be done to transform this business in the interests of customers and shareholders.
"We have made progress working with landlords, through a portfolio partnership approach, to reduce our footprint and refurbish stores to transform the customer experience, whilst simultaneously delivering material cost savings.
"We announced with Scentre Group a plan to refurbish our store at Belconnen to create an enhanced shopping experience across a reduced floor space.
"Similarly, we will hand back a floor and refurbish our Cairns store from January 2020. We have also agreed to exit level four of Emporium in Melbourne from May 2020," he said.
King also cited improvements in the back-end operations, the relaunch of the website and improved staff training as factors in the results.
"Pleasingly customer service metrics have improved during the year reflecting back office efficiencies, the new labour model that ensured more appropriate service levels at peak trading times, greater training levels and improved product knowledge.
"The rollout of new and ‘Only at Myer’ brands continues with a significant brand refresh currently underway across all stores, with more than 90 new brands expected to be added to our range by Christmas 2019.
"The continued strong growth in digital sales, now representing our largest store and 9.8% of total sales, was particularly pleasing.
"This growth reflects both the upgraded website that was launched in September 2018 and a significant increase in products available online, which included the addition of several concessions.
"We aim to match our store and online ranges by the end of this calendar year and are confident that there are significant opportunities to continue to grow this channel.
"During the year we reduced costs by $32.6 million reflecting the enhanced new staffing model in-store, more focused marketing spend, reduced store occupancy, as well as efficiencies and reduced waste across all areas of our business," he said.
Further in the results statement, Myer said that it believes it can implement additional cost savings in its supply chain.
Myer released its full year 2019 financial results on September 05.
To read the full results report, click here.