Myer's online sales surge 54 per cent but Omicron hampers post-Christmas performance

Myer's online sales surge 54 per cent but Omicron hampers post-Christmas performance

Although Myer (ASX: MYR) has reported a strong period of trade in the five months leading up to January, the retail giant warns Omicron has negatively impacted business into the new year.

The retailer reported total sales increased by 12.3 per cent year-on-year, with online sales surging by 54.3 per cent and making up more than a quarter of transactions.

Department store sales in the lead-up to Christmas were strong, as Myer recorded a 17.1 per cent increase for the two months leading up to January compared to the same time last year.

As the Omicron wave continues to impact foot traffic, the company is looking to focus on growing its online channel.

“The results demonstrate the continued momentum of our Customer First Plan and the resilience of the business to overcome the initial months of lockdowns and still record significant sales growth during this period,” said Myer CEO John King.

“Whilst we are seeing Omicron impact sales post-Christmas, we will continue to focus on growing our strong online business, ongoing engagement across our MYER one program and disciplined management of costs and inventory.”

Myer notes that although sales performance led to improved operating gross profit it was offset by higher costs of doing business, which was primarily due to the absence of JobKeeper that was received in the prior corresponding period.

The retailer also reported 27 per cent of bricks-and-mortar trading days were lost during the first quarter due to COVID-19 mandated store closures.

Shares in MYR are up by 6.7 per cent to $0.40 per share at 12:47 AEDT today.

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