By Patrick Avenell
A reduced electronics offering at Myer has led to a decrease in sales but an increase in profitability, according to the department store’s full year results, announced today.
Myer reported a net profit after tax of $162.7 million (down 3 per cent year-on-year) from total sales of $3.16 billion (down almost 4 per cent). CEO Bernie Brooks expressed satisfaction with this result, which he said came despite challenging conditions.
“Throughout 2011, we experienced unprecedented challenging retail conditions,” he said. “The tough trading conditions experienced from November 2011, exacerbated by the floods in Queensland and Victoria, continued into the second half.”
Click here to sign up for our FREE daily newsletter
Myer said it had “re-engineered” its electrical category; exiting whitegoods and “rationalising” its music and DVD offering. This has enabled it to reallocate floor space to higher margin products. Myer cited Bose and Cisco, and expanded accessories range as real-world examples.
Singled out for special mention were Myer’s “strong Apple presence”, and “strength in small appliances”.
Overall, Myer’s electrical offering accounted for 12 per cent sales during the 2011 financial year, compared to 14 per cent in FY201.