Department store Myer has suffered a dip in sales for the third quarter of 2014, but remains steadfast on its road to recovery.
The company today reported total sales – for the 13 weeks to April 26, 2014 – of $646.5 million, down 0.93 per cent compared with last year.
Comparable store sales in the third quarter, however, saw a 0.24 per cent increase compared with the previous corresponding period.
Cosmetics, Fashion Accessories, Youth, Small Appliances and Toys were singled out as the strongest performing categories during the quarter, with New South Wales and Victoria the best performing states.
Commenting on the results, Myer CEO Bernie Brookes said the company is on the right track.
“It was encouraging to achieve another quarter of comparable store sales growth which has now been achieved in seven of the last eight quarters.
“The marginal decline in total sales reflected the continued significant sales impact of the refurbishment of three of our top 20 stores and the commencement of a refurbishment at the Macquarie (NSW) store in February.
“In addition, sales continued to be impacted by the closure of Dandenong (VIC) last October and more recently the closure of the store at Elizabeth (SA) in February. These refurbishment and closure impacts were partially offset by the sales contribution of the new store at Shellharbour (NSW) which opened in May 2013,” Brookes said.
Three of Myer’s top 20 stores continue to undergo significant refurbishment, including: Adelaide City (SA), Indooroopilly (QLD) and Miranda (NSW).
Brookes also made mention of its Elizabeth store in South Australia, which was closed in February this year due to lacklustre performance.
“In line with our plan to improve the productivity of our store network, the Elizabeth (SA) store was closed in February 2014 with all team members successfully re-deployed to other stores.
"We are encouraged by the improved trading performance of the nearby store at Tea Tree Plaza since the closure of our store at Elizabeth,” Brookes said.
“Trading at our flagship store in Melbourne has benefited from the recent openings of a number of new retailers in the Melbourne CBD, including the first stage opening of the Emporium development, particularly in the key categories of Womenswear and Youth. There has [also] been improved customer traffic flow into the store during the third quarter.”