MySale Group is developing strategic partnerships with a number of retailers worldwide in order to grow into a retail marketplace, as well as a flash Sale business, chief executive Carl Jackson has said.
MySale has already teamed up with two large partners – Sports Direct in the UK and online flash Sale site Gilt in the US – to “anchor” its retail marketplace, and is now seeking several others.
“Today MySale is predominantly a flash Sale business; tomorrow it will be a retail marketplace as well,” said Jackson.
Through its partnership with Gilt, MySale now has access to its inventory, including product from luxury brands such as Prada and Gucci. “It fills a gap in our catalogue,” said Jackson.
Meanwhile, it has fully integrated with Sports Direct’s inventory and is now looking to roll out the sportswear firm’s brands to Southeast Asia, following a successful launch in Australia and New Zealand through MySale Group-owned retail site Deals Direct.
“At the end of year we’ll be talking more formally about Sports Direct in terms of what it’s done for us across the whole business,” said Jackson.
He was speaking to Drapers after MySale Group revealed that it made an underlying pre-tax profit of A$600,000 (£371,110) in the six months to 31 December 2016, up from a loss of A$200,000 (£123,700) during the same period the year before.
Its underlying EBITDA soared by 66.7% to A$3m (£1.9m). Total group revenue rose 7% to A$136.7m (£84.6m).
The net cash balance increased to A$29.1m from A$27.5m (£18m from £17m) at 30 June 2016.
The group, which includes premium UK site Cocosa, had an active customer base of 870,000 by the end of the period, up 19% year on year. Its average order value increased by 3% to A$86.
More than half of orders (58%) were made on mobile.
Jackson explained that the core online business grew by 19%, with positive numbers across all of its territories. “Below that the gross margins moved quite dramatically, which underpinned the profit growth.”
He added: “We’ve focused on our brands, our value proposition and investing in technology – we’ve invested a lot in the new platform.”
The platform, which went live in January, will bring together its retail sites – Deals Direct, OO and TopBuy – with its flash Sale business. So far only TopBuy has been migrated across – the rest of its retail sites and partners will follow, then the larger flash Sale sites.
“The technology development allows us to scale lots more product onto that platform. We already have 2,500 brand partners across the globe. By dropping in brands from other [retailers and flash Sale firms], we can build that inventory quickly,” explained Jackson.
The technology investment has also focused on improving the mobile experience, as mobile now represents 58% of the group’s orders.