Myer announces weak sales, cuts growth targets

Revealing declining figures.

Myer has announced Q1 sales for the 13 weeks to 28 October, 2017 of $699 million, down 2.8%. Sales on a comparable store sales basis were down 2.1%. In light of this, Myer is now aiming to grow sales per square metre by 10% by 2020 rather than 20% and underlying earnings per share are forecast to grow by 5% CAGR between 2017 and 2020.

The department store also plans to close or shrink four in the next two years and eight by 2025, in addition to the four store closures announced in 2017.

Myer CEO and managing director, Richard Umbers said, “Sales during Q1 FY2018 reflect the continuation of challenging retail conditions characterised by heightened competition and subdued consumer sentiment.

“During the quarter, Myer’s online business continued to record strong sales growth, which increased by 67.8% on the previous corresponding period. Omni-channel sales, which also include sales via our 2,500 in-store iPads, totalled $48.4 million. Click & Collect grew strongly during the quarter to now represent 22.1% of orders.

“Myer remains focused on the upcoming and more significant trading periods of Spring Racing and Christmas during Q2 FY2018.”

Myer was also host to a Strategy Day on Wednesday to set out the progress made on the New Myer strategy and the areas of new emphasis.

“Today we signalled a heightened focus on the growth of our very successful omni-channel business as well as experiential retail to create inspiring destinations. We also highlighted the importance of our Myer One program and the increasing use of customer data to personalise our offer, in terms of range and services in store, and through marketing activity,” Umbers said.

“Sales, profitability, click and collect take up, website traffic and conversion are all increasing. Cost of fulfilment, and fulfilment times are falling. Building on the strength of this business is a key focus going forward.”

Myer also confirmed an acceleration of the rollout of new retail concepts across its store network including six new food partners, five upgraded food offers and 12 locations for new beauty and grooming services.

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