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  • 29 July 2021 13:29

MyDeal delivers record quarter on all key metrics

Online retail marketplace for home and lifestyle products, Limited (ASX: MYD) has delivered a record quarter to end FY2021 on a ten-year high.

Online retail marketplace for home and lifestyle products, Limited (ASX: MYD) has delivered a record quarter to end FY2021 on a ten-year high.

MyDeal achieved Gross Sales of $46.6 million for Q4 FY21, delivering 12.4% growth on Q4 FY20, where it was cycling growth of 327.0%, as the first full quarter of COVID-19 effects in 2020. Gross Sales for FY21 ended at $218.1 million, up 111.1% on the prior corresponding period. Active customers reached a new record level of 894,225 as at 30 June 2021, up from 488,350 as at 30 June 2020 and 883,397 as at March 2021. The company continues to experience favourable returns on customer acquisition with ROI on first purchase remaining positive.

The positive trend in customer loyalty and repeat business continued during the quarter with 59.4% of all transactions coming from returning customers in Q4 FY21, improving on both the 44.8% in Q4 FY20 and the 56.1% in Q3 FY21.

MyDeal CEO Sean Senvirtne said, “MyDeal continues to cement its position as one of Australia’s leading online retail marketplaces for home and lifestyle products by again growing significantly faster than the industry average to deliver a record fourth quarter. We have positioned ourselves fairly and squarely on the shopping list of Australian consumers and are well placed to capture the increased demand for online shopping. This is evident in our growing customer base of almost one million active shoppers, and the proportion of shoppers that enjoy the MyDeal experience and return to shop with us. This year, our platform generated more than $218 million in Gross Sales – the strongest result in the Company’s ten-year history.

“It’s exciting to see the growth in transactions from returning customers, which proves that MyDeal resonates with Australian shoppers searching for a quality experience when shopping online, and our strategy of offering great home and lifestyle products and brands at great value is delivering continued growth.

“Our private label range continues to grow and is becoming an increasingly large margin driving component of our business, emphasising our strength in sourcing and delivering bulky household items. “Contributing to our success was the implementation of a key strategic milestone, the native iOS and Android MyDeal mobile apps. Since launching in May, we have seen a significant uplift in user experience and retention with ~7% of customers now shopping via the app. With high ratings, high utilisation and improved customer conversion, we will continue to further optimise the app for growth in the years ahead.

“We are well placed to grow MyDeal into Australia’s largest marketplace for home and lifestyle products with new additions to our leadership team, trends in Australian online retail that play to our online marketplace’s strengths, a healthy cash balance of $42.7 million, and over six million products available to our growing customer base of almost one million Australians.”

Momentum continues to grow with MyDeal’s Private Label, generating $2.3 million of Gross Sales in Q4 FY21 (Q4 FY20: $0.3 million), and $8.8 million for the full year representing 5.2% of total Gross Sales. This business represents a major growth opportunity for MyDeal to grow sales and margins, and the company says it will continue to expand its product range opportunistically.

“The challenge of cycling a period of unprecedented growth for the industry cannot be underestimated, and the fact that MyDeal has been able to continue growth in active customers and sales is testament to what lies ahead for the business. As we invest in growing brand recognition and introduce MyDeal and our range of over six million marketplace products and quality private label offering to more and more Australian’s, we are confident these key metrics will continue to grow.

“E-commerce remains significantly underpenetrated in our core furniture, homewares and lifestyle categories, and we see strong opportunity to attract new customers to the platform as Australian’s transition to online shopping more often and become more aware of the MyDeal brand and proposition.

“With a best in class team now in place, a loyal base of nearly one million active customers and a strong level of repeat transactions, we are well positioned to continue to grow. The focus in FY22 will be on using our proprietary technology advantage to deliver further personalisation and app engagement. Our customer base will also benefit from an expanded private label range plus a growing range of much loved brands, and we expect continued sales momentum.”

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