Myer blames TV price deflation for downbeat results

By Keri Algar

SYDNEY, NSW: Myer has accused its receding Q1 sales on the entertainment division, claiming that were it not for TV price deflation, sales for the Group would have been up compared to the same time last year.

The 1.53 per cent ebb in Q1 sales was announced today, in stark contrast to the 5.21 per cent increase in sales for the corresponding period last year. However, Myer CEO Bernie Brooks remains optimistic for the remainder of 2011, claiming that new stores and refurbishments will ensure the 5 to 10 per cent profit guidance issued at the beginning of the financial year.

“Myer delivered a credible sales result in the first quarter of FY11, notwithstanding that the consumer remained cautious in the face of growing concern around rising interest rates and uncertain economic conditions,” said Brooks in a statement.

“In an increasingly competitive environment, Myer maintained a competitive position while price deflation occurred across most categories.”

“The recent interest rates rise and current consumer caution will again make trading conditions challenging on a comparative basis, however from November onwards we expect to see the benefits from a number of recent initiatives including contributions from our new stores at Top Ryde and Robina.”

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