After a rollercoaster six months of lockdowns, Christmas and Omicron, department store Myer yesterday delivered a strong half year result with net profit up 55 per cent and its first dividend payment since FY17.Much of this came from customers who are members of the Myer One loyalty scheme – with 70 per cent of all sales coming through the program.According to chief executive John King, the first half was severely hit by Covid, with around 23 per cent of potential trading days hit by state enforced lockdowns, though Myer also saw a massive jump in sales during the pre-Christmas period that tapered off as the Omicron wave begun affecting customer confidence.By midday on Thursday, the business’ stock price had jumped 20 per cent, as shareholders welcomed the turnaround the business has made in the past four years since King took over and initiated the ‘Customer First’ business plan. “This result demonstrates that our Customer First plan was the right plan when we started it, and will continue to be the right plan,” said King. “Our unrelenting focus on profitable sales, growing the online business, strengthening our balance sheet and reducing our unprofitable space will remain a focus for every one of Myer’s team members going forward.”According to King, the results showed that when the business isn’t impacted by lockdowns and Covid-19-related issues, it performs well. During the Christmas rush, Myer saw sales growth of 17 per cent ending Jan 1, compared to the same period of 2020.And while some analysts worried that Myer could be impacted by a potential rising inflation, King said that inflation isn’t particularly relevant to the business: 90 per cent of its sales are made at recommended retail prices, so it has a lot of room to move to keep prices fair to consumers and profitable for itself.Loyalty is kingPart of Myer’s successes over the last six months comes from the business’ Myer One loyalty program, which is now a significant focus moving forward. “I’m not trying to pat ourselves on the back here, but I think it’s been pretty outstanding and shows the loyalty of our customers,” King said.“Myer One has always been key to our business. Being closer to our customers, being data-driven in our approach with them, and rewarding their loyalty is at the heart of what we do.“Importantly, the growth of our Myer One customers is providing the foundations for our future business. We know the program is a highly valuable differentiator in the market.”The customer data that comes from Myer One, such as what they’re buying, when they’re spending, and what they want, is being passed on to the brands partnering with Myer and allowing them to better tailor their message to customers – driving more sales and, as the products are more applicable to customers, more loyalty.Online growsOf particular note to King was the growth in its online sales, which were up 47.5 per cent to $424.1 million, and now make up 27.9 per cent of all Myer sales.“The particulars of the online business sometimes get lost,” King said. “But we’re outpacing most of our fiercest competitors.”In fact, King stated that Myer’s online growth had beaten that of David Jones, Kmart, Target and Catch, and said that its homewares and beauty categories outpaced the growth seen at pureplays Temple & Webster and Adore Beauty.And the business will continue to “aggressively” drive growth online, King said, as it chases down its goal of $1 billion in annual online spend.The other part of Myer’s growth comes from a large investment into its supply chain, which will culminate in the third quarter of this year in the opening of its National Distribution Centre (NDC).According to King, home delivery will continue to underpin growth for the business, and the NDC will help to facilitate that through a centralised fulfilment model, with support from the business’ third party logistics partner.“This will ensure we’re getting products to our customers in the quickest and most effective way,” King said. “And will accommodate the growth of our business and drive the level of service that our customers have come to expect from Myer.”