By Claire Reilly
Myer has announced a slight increase in its half-yearly sales and profit results today, with the retailer posting a 1.7 per cent increase in sales for the 26 weeks ended 26 January 2013, and a 0.7 per cent increase in net profit after tax.
While the company is claiming a “stable balance sheet” there were certain categories that were absent from the results — including whitegoods, gaming products, consoles, CDs and DVDs —following a complete exit from these categories, which began in 2010.
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Speaking about the results was Myer’s CEO, Bernie Brookes, who remained positive despite the reasonably minor uptick in sales.
“We are pleased that the positive sales trend continued during the half, with the second quarter representing our third consecutive quarter of positive comparative store sales growth,” said Brookes.
“The exit and rationalisation of categories including whitegoods, gaming and consoles, CDs and DVDs, that we commenced in 2010 has been completed with the space reallocated to higher margin fashion categories,” he added.
Brookes also noted that Myer had been working with suppliers to ensure “harmonisation” in pricing across its product range.
“Suppliers have been supportive of our endeavours to be more competitive for our customers in a global marketplace,” he said. “Customers have responded well to lower prices, and in the majority of cases volume increases have compensated for price deflation.”
Myer opened two new stores during the six months in Fountain Gate (Victoria) and Townsville (Queensland). In the second half of the financial year, Myer will conduct major refurbishments on three of its stores in Adelaide (SA), Indooroopilly (Queensland) and Miranda (NSW) which is expected to ‘impact’ sales, while the Fremantle (WA) and Tuggeranong (ACT) stores will be closed.