18 June, 2024
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Myer sales near two-decade high after department store posts strong Christmas


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Myer has become the latest major retailer to report a bumper Christmas trade, revealing its strongest sales figures in nearly two decades.

The department store chain revealed revenue had risen 24.8 per cent in the six months to the end of 2022 in a statement to the ASX on Tuesday.

Sales were 18.9 per cent up on the same period in 2019, pre-COVID.

Online sales fell 9.4 per cent, reflecting a return to shopping centres in the wake of COVID restrictions easing across the country during 2022.

Myer chief executive John King said earnings had also grown, with the business poised to unveil profits up to $66 million for the half year.

Myer follows other major retailers such as JB Hi-FI and Rebel owner Super Retail Group in reporting strong Christmas consumer spending.

JB Hi-Fi Group, which also owns The Good Guys, reported sales had increased 8.6 per cent in the December half in a trade update last week.

Retailers are, however, expecting consumer momentum to ease during 2023 as the affects of higher interest rates and diminished savings start to weigh on consumer budgets, forcing households to tighten their belts.

Mr King said on Monday that Myer is “cautious” about the trajectory for the economy, but is confident its turnaround strategy will keep delivering.

“We remain cautious on the macroeconomic environment for the remainder of the calendar year, but [we] are equally confident in the continuing momentum we have within the customer first plan and a range of initiatives we are executing,” he said in an ASX statement.

The department store said strong consumer activity had continued into early January, with New Year stocktake sales outperforming last year, which was affected by worker shortages during the Omicron wave.

Inflation is one major factor pushing up the dollar value of Myer’s sales, with prices across categories such as clothing and footwear (up 7.1 per cent) and accessories (up 6.4 per cent) rising sharply over the prior September quarter, according to annual data published by the ABS.

The ABS is set to publish December quarter price data on Wednesday that’s expected to show another jump in retail inflation over Christmas.

The post Myer sales near two-decade high after department store posts strong Christmas appeared first on The New Daily.