Despite seeing first quarter total sales slip 3.5 per cent down to $681 million, Myer continues to remain optimistic.

Speaking at the company AGM, Myer chairman Howard McDonald said that while there are no clear short-term indicators of when consumer confidence will return to more normal levels the business will remain flexible to deliver the best results it can.

He also described that the Reserve Bank’s decision to cut interest rates by 0.25 was a “step in the right direction” to help improve consumer confidence, particularly as retailers head into the critical Christmas period.

Going forward, the company believes that new stores and refurbishments, improved customer service, its e-commerce offer, together with its Myer One loyalty program will help drive sales.

“Our continued focus to optimise promotions, reduce shrinkage and increase Myer Exclusive Brands, underpinned by a lean cost structure, will help ensure profitability is maximised and enable optimal returns to shareholders,” McDonald said.

“This strategy, supported by our world-class supply chain, delivers our competitive advantage and is underpinned by the commitment of our 13,000 team members and the management team led by Bernie.”

Myer also reassured that the results from its first quarter is in line with its expectations, reaffirming that it anticipates full year 2012 sales to be flat and net profit after tax to be up 10 per cent below 2011 of $162.7 million.