MELBOURNE: Myer's total sales for the first quarter of 2010/11 were down 1.53 per cent on the prior corresponding period, with a key category hit by price deflation.
The national department store reported total sales of $706 million for the quarter to October 30, 2010. This was down from $717 million in total sales for the first quarter of 2009/10.
The retailer reported Victoria and Queensland were the strongest performing states, with home, women's accessories, menswear and youth apparel all selling well.
The success of the apparel and accessories categories was offset however by “relative weakness” in the entertainment category, with sales of televisions in particular taking a hit.
Myer CEO Bernie Brookes said sales for the remainder of the 2010/11 year would benefit from a number of key growth initiatives.
“The recent interest rate 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, as well as a significantly improved contribution from Myer Melbourne where seven floors are currently trading,” Brookes said.
“We also expect a positive impact from our refurbished stores at Canberra City, Charlestown and Garden City, all of which will be open in time for Christmas, as well as from refreshed cosmetics halls in 16 of our smaller stores.”
Brookes reaffirmed the company expects net profit for the 2010/11 year to grow between five and 10 per cent.