Myer’s sales grew 1.9 per cent year over year to $837.2 million in the second half to date, with comparable sales up 1.5 per cent.
The department store chain’s online sales increased 9 per cent and accounted for 21.4 per cent of total sales in the 16 weeks in the second half to date.
“Despite challenging trading conditions that were compounded by a subdued retail environment in the lead-up to the May federal election, Myer has reported growth in its year-to-date sales,” said Olivia Wirth, Myer executive chair.
“This was driven by our strong MYER one loyalty program, which has a record 4.6 million active members and a 79 per cent tag rate, as well as our strong online performance and our diverse mix of categories.”
Myer said that margin pressure from heightened promotional activity observed across the broader retail sector, increased costs of doing business, and unfavourable foreign exchange movements affected its performance during the period.
It also noted that it has been impacted by a sales mix shift to concession and increased costs relating to ramp-up complexities and remediation at the new National Distribution Centre (NDC) in Ravenhall, Victoria, which delayed the realisation of expected benefits.
For comparability, the results exclude Apparel Brands, which posted sales of $211.2 million, down 3.9 per cent, as comparable sales declined 3.7 per cent.
Apparel Brands’ online sales slid 3.5 per cent and represented 16.8 per cent of total sales.
Earlier this year, Myer acquired Premier Retail’s Apparel Brands, which includes Just Jeans, Jay Jays, Portmans, Dotti, and Jacqui E.
“Consumers remain cautious and focused on value in response to cost-of-living pressures and the current macroeconomic headwinds and uncertainty. This has resulted in volatile trading conditions with widespread promotional activity across the retail sector,” said Wirth.
“We remain focused on resetting the business and implementing our strategic growth plan to position Myer Group as an omni-channel retail platform capable of delivering growth during all phases of the economic cycle.”