Myer finishes under Target

Coles Myer Limited (CML)'s year-end results revealed an uncertain future for Myer, while Target and Kmart acquitted themselves well despite the retail slowdown.
Announcing the group's year-end results CML CEO John Fletcher revealed that department store chain Myer's ownership is up for review, as it fights to keep up with its CML stable mates and specialist retailers continues.
"The fact is that Myer stores have been outmanoeuvred by specialty stores," he claimed.
Myer reported a weak sales increase of 2.1 per cent for the year and made a loss in the second quarter due to "a triple play; soft discretionary spending, the late onset of winter and the removal of the shareholder discount card, claimed Fletcher.
A late fourth quarter review of CML's non-food brands had led to a decision to rethink the ownership options for Myer, he added, with CML directors considering either a trade sale, de-merger or retention of the store.
CML maintains no redundancies will ensue as a result of the ownership review.
"It's business as usual for Myer," said Fletcher.
CML's other non-food brands -- discount department stores Target and Kmart performed well -- despite tough trading conditions.
Target proved the star player, achieving sales growth of 8.8 per cent over the previous financial year, while fourth quarter sales rose 11.1 per cent on the preceding period.
Fletcher attributed Target's performance to its direct sourcing strategy, which had resulted in "a highly differentiated product range supported by strong in-store execution".
Discount department store Kmart recorded sales growth of 6 per cent for the year, up 3.3 per cent from the previous year.
The store's apparel performance continued to improve, said Fletcher, with a strong sell-through for merchandise and a positive customer response to the spring fashion launch.