Despite Myer posting an overall loss for the 2010/2011 financial year, its online sales have increased over 300% this fiscal. And while the department store’s online sales currently account for a small percentage of its total revenue, the sector is predicted to grow.

Australians embrace online shopping

While Australians have been slow to take up online shopping, largely due to a lack of regional broadband connectivity and privacy concerns, they are quickly catching up. Online sales are becoming a boom area for retailers, who save on overheads and staff costs. Yet retailers continue to face competition from overseas businesses, who are exempt from charging GST on purchases under $1,000.

Social Media used to boost online sales

In response to the growth, Myer is spending $6 million upgrading its website and will launch a multi-channel sales strategy including Facebook and Twitter activity early next year. The retail giant predicts that its online sales, currently valued at around $5 million, could eventually match sales at  bricks and mortar Myer stores, in the region of $20 – $30 million.

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Article by: Dan Kuseta @dankuseta, @smkapac