TV price deflation and “patchy” consumer confidence hits David Jones Q1 sales

By Keri Algar

SYDNEY, NSW: The giant retailer reported a flat growth in sales of 3.2 per cent, on par with guidance and largely thanks to increased trading floor space due to the Bourke Street Mall refurbishment. Like for like sales growth was 1.2 per cent.

Zahra was reluctant to provide a guidance update for the year until after the Christmas trading period.

“Given consumers remain conservative in their spending, it is too early to provide any guidance update until we have traded through the all-important second quarter, which is the key component of our Company’s first half profit,” Zahra said in a statement to shareholders on the Australian Securities Exchange.

“Consumer shopping behaviour is still patchy and we have seen significant deflation in Televisions. We have had good sales performances in Woman’s Accessories, Menswear and Home Furnishings, particularly in Manchester.”

Zahra also mentioned the new online store, which was launched on 2 November 2010. The online site offers 1,500 products across categories including small appliances and homewares.

“We recognise online shopping as an opportunity for our business and have taken a measured approach to investing in and building this business.”

Meanwhile, Matthew Rule will replace David Leckstrom as the new online operations manager at Myer, today.

Last week Myer reported a 1.5 per cent decline in Q1 sales, read Current.com.au’s report here.

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