百货集团财报2019（英文）_102页_2mb

Summary of Myer Holdings Limited Annual Report 2019

Core Content

Myer Holdings Limited, one of Australia's largest department store groups, held its tenth Annual General Meeting on 30 October 2019. The report outlines the company's strategic focus on delivering a customer-first approach, enhancing operational efficiency, and improving financial performance through disciplined cost management and deleveraging.

Main Points

Company Overview

• Myer operates 61 department stores across Australia.
• It also manages Sass & bide and Marcs and David Lawrence (MDL).
• The company has sourcing offices in China and Hong Kong.
• Myer's online business has become a significant growth driver, now representing the largest store by sales and accounting for 9.8% of total sales.

Customer First Plan

• The Customer First Plan is central to Myer's strategy, focusing on improving customer experience and delivering value.
• Key areas of focus include:
  • Transforming the in-store experience by optimizing brand flow and layout.
  • Introducing and expanding new brands and categories, especially in women's and men's fashion, beauty, and homewares.
  • Enhancing the digital shopping experience through the new website and Myer Market platform.

Leadership and Governance

• The Board and Executive Management Team were significantly refreshed, with five of eight current members joining within the last three years.
• New appointments include Lyndsey Cattermole AM (IT entrepreneur) and Jacquie Naylor (experienced retailer).
• The Board now has an equal split of female and male directors, reflecting a commitment to gender diversity.
• Directors are encouraged to invest in shares to align their interests with shareholders, with over two million shares owned collectively.

Financial Performance

• Total Sales: Down 3.5% to $2,991.8 million.
• Comparable Store Sales: Down 2.9%, with a 1.3% decline excluding Apple products.
• Digital Sales: Increased by 21.9% to $292.1 million, representing 9.8% of total sales.
• Operating Gross Profit (OGP): Declined by 1.9% to $1,162.4 million, but OGP margin improved by 65 basis points to 38.9% due to better brand mix and lower markdowns and shrinkage.
• Cost of Doing Business (CODB): Decreased by 3.1% to $1,002.4 million, driven by improved efficiencies.
• EBITDA: Increased by 7.2% to $160.1 million.
• Net Profit After Tax (NPAT): Increased by 2.2% to $33.2 million.
• Operating Cash Flow: Rose by $8 million to $138 million.
• Net Debt: Reduced by $69 million to $39 million.
• Inventory: Decreased by 5.4% to $346.9 million.

Key Initiatives

• Store Refurbishments: 34 stores were renovated, with additional plans for Cairns and Belconnen.
• New Brands: Over 50 new brands were introduced, with plans to expand to 90 by Christmas 2019. These include Vero Moda, Selected Femme, Jack London, and more.
• MYER one Loyalty Program: Has over five million members, offering Rewards and Credits based on spending.
• Digital Enhancements: Myer.com.au was launched in 2018, with continuous improvements based on customer feedback. The Myer Product Enrichment Portal was implemented, streamlining product management and supplier processes.
• Sustainability and Community: Myer's Community Fund distributed over $1.9 million to 55 charities. The Precious Metal Ball raised over $200,000 for the Australian Childhood Foundation.

Key Information

• Leadership: Garry Hounsell (Chairman) and John King (Managing Director and CEO) provided the Chairman & CEO's Report.
• Efficiency Measures:
  • Reduced Support Office size by 30%.
  • Implemented RFID smart labels to improve inventory accuracy and reduce product loss.
• Customer Experience:
  • Myer won the Roy Morgan Annual Customer Satisfaction Award for Department Store of the Year for the fourth consecutive year.
  • The "My Store" campaign was relaunched in 2018, emphasizing the brand's heritage and future evolution.
  • The "Naughty or Nice" campaign was recognized as the 2018 Ad of the Year and received international acclaim.

Conclusion

Myer has made significant progress in executing its Customer First Plan, enhancing digital and in-store experiences, and improving financial performance through cost discipline and efficiency initiatives. The company remains committed to its core values and continues to invest in its future by focusing on customer satisfaction, brand innovation, and sustainable growth.