Myer's been hanging by a thread for a while now. But thankfully, things look like they're finally turning around for the department store giant.
Background: Myer is the Aussie department store that was founded in Bendigo back in 1900. Fun fact - that's 62 years after David Jones was founded.
What happened: Myer's been hanging by a thread for a while now. It reported huge losses of $172.4 million last financial year, thanks to heavy write-downs and store closures (TY COVID).
What else: But thankfully, things look like they are finally turning around for the department store. For the financial year to June 30 2021, Myer announced a net profit of $46.4 million, and it's partly thanks to its emphasis on shifting to become a digital retailer.
💡In the past, large retailers, like Myer, cobbled together a basic website, invested very little on digital marketing and considered themselves to be ‘multichannel’ (i.e. where they have multiple channels for selling their products). But it wasn't really.
💡Back in 2018, Myer’s online sales accounted for around 6.7% of its total sales. And because of this, Myer hasn’t been able to keep pace with online retailers like The Iconic or Adore Beauty.
💡Now, Myer is showing a real shift away from its physical assets (i.e. shiny department stores) towards towards its digital assets (i.e. shiny website). And now, their online sales makes up more than 20% of their total revenue.
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