In 2006/07, we sourced and introduced new products (eg Smiggle stationery, iTunes, gift cards and travel accessories) to support our growth objectives. This, together with strong results in our core merchandise lines, resulted in revenue growth of 3 per cent. Gross margin performance was again strong, with 6 per cent growth achieved. Some other achievements in this area are listed below.

• Merchandise inventory was maintained at 30 per cent below peak levels.
• External retail experts were appointed to the positions of Group Manager Retail Services, National Merchandising Manager and Visual Merchandise Manager.
• Packaging revenue increased by 7.4 per cent. This category continues to perform strongly,
  with growth in electronic commerce being a key factor in producing a result closely aligned to that of our parcels business.
• General merchandise revenue increased by 12.5 per cent. Excellent Christmas trading and growth in key lines (eg books) support this result, which is well above market performance.

Australia Post’s Philatelic Group produces postage stamps and a variety of products for stamp enthusiasts. Growth in this area has been largely driven by the sale of licensed products. Developed in conjunction with the likes of Cricket Australia, Disney, Warner Bros, AFL and NRL, they generated more than $1 million in revenue during the financial year.

The range of collectable products was further extended this year with the release of two more catalogues in the Impressions series. As well as giving stamp collectors a wider range of collectables from which to choose, the catalogues are taking philatelic products to customers outside of the traditional philatelist market segment.

Stamp highlights of the year included:

• Australia wins the Ashes (issued January 2007). An 8,000-copy limited-edition Ashes Victory stamp and coin cover sold out in days.
• Year of the Surf Lifesaver (released March 2007). We produced a series of stamps – including Australia’s first moving-image stamp – to commemorate the Year of the Surf Lifesaver. The stamp was created with cutting-edge technology involving high-resolution video images and multiple optical plastic lenses.
• Lunar New Year (Christmas Island) stamps (released January 2007). Australia Post produces the stamps for the Australian territories – Cocos (Keeling) Islands, Australian Antarctic Territory and Christmas Island. This year saw the release of Australia’s first round stamp to celebrate the end of the 12-year cycle of the Chinese zodiac (Year of the Pig).

Click here to view a selection of the year’s stamp issues and click here for information about our philatelic exhibitions.