Sales at department store Myer have sunk by 3.8 per cent for the 2011 financial year.
Chairman Howard McDonald revealed the trading results at the listed company's annual general meeting today.
Total sales for the full year were $3.2billion and net profit after tax was $162.7million, a decrease of 3.6 per cent on the previous year.
“The 2011 financial year presented an extremely tough environment for the discretionary retail sector,” McDonald said. “Consumer confidence was impacted by increasing costs of living pressures including utility charges, education and health care, new taxes and interest rate and employment uncertainty.”
McDonald said the floods in Queensland and Victoria and the domestic and global economic and political uncertainty also contributed to poor trade.
“This backdrop presented the toughest trading climate I have faced in my 35 years in retail,” McDonald said. “While there are no clear short-term indicators when consumer confidence will return to more normal levels, the leverage potential is significant for this highly efficient business.”
McDonald said the company maintained a strong focus on reducing costs, managing their promotional program and achieved an improved operating gross profit margin, as well as clean inventory at year end.
Going forward McDonald said new stores and refurbishments, improved customer service, a leading e-commerce offer, together with a strengthened Myer One loyalty card program, will drive sales.
McDonald said assuming trading conditions do not deteriorate further they continue to anticipate full year 2012 sales to be flat.