Myer highlights turnaround

MELBOURNE: Myer has announced half-year results for the period ended January 2008, confirming its continuing turnaround since acquisition from Coles 22 months ago.

Announcing the results in Melbourne this morning (March 27), Myer executive chairman Bill Wavish confirmed financial highlights of the period included earnings before interest and tax up 23.5 per cent to $152 million; net profit after tax up 52 per cent to $79 million; and an improved balance sheet with net debt reduced by 34 per cent since acquisition to $643 million after Melbourne store sale and lease back and capital return.

 Myer's new world class supply chain performed well during the peak trading period and was operating more than a year ahead of expectations, he said.

Meanwhile its store expansion program was advancing with the opening of Eastgardens in New South Wales and nine of 18 new stores signed with landlords to support expansion of the Myer chain to 80 stores during growth phase. The refurbishment of Myer Chermside (Qld) was complete while refurbishments were underway for the flagship Melbourne and Sydney stores.

Myer chief executive Bernie Brookes said the business had made strong progress since its ownership change 22 months ago.

"We have made great progress in building a world-class supply chain, implementing our 101 business improvement project, as well establishing stand-alone information technology and human resources functions. We are now investing in store opening and refurbishment programs which will bring a 'new look' Myer to more Australians to underpin the growth of this business in future years."

Priorities for the next 12 months included the roll out of new point-of-sale systems and closed circuit television across all stores, six new full-sized stores to be signed and two stores to be opened (Bankstown and Northlakes); the refurbishment of six stores including the flagship Melbourne and Sydney stores; continued focus on customer service as part of a new nationwide program; continued refinement of Myer's product portfolio with the addition of new national and international brands; and investment in more 'retail theatre' and in-store events.

Meanwhile in other news, the department store has also become one of the first major retailers to allow staff to access paid parental leave.

According to media reports issued this morning, from April 1 staff who have worked a minimum of 18 months can apply for six weeks maternity leave.

The store currently employs more than 10,000 permanent workers 81 per cent of whom are women.

Myer spokesman Greg Travers said the arrangement would help recruit new staff and convince existing staff to stay.