Myer set for slump in returns

MYER’S struggle to beat sluggish consumer spending will be under the spotlight today, with the department store giant expected to confirm a fall in sales amid its full-year results.

Rival David Jones last month blamed falling consumer confidence as a major factor behind a 0.7 per cent fall in fullyear comparable sales, and Myer looks set to suffer, too.

Chief executive Richard Umbers has been trying to turn around the business for two years but Myer already warned in May that “challenging trading conditions” would continue to hurt sales.

The retailer reported a 3.3 per cent fall in its thirdquarter sales in May with comparable sales down 2 per cent.

Citi analyst Bryan Raymond said the second half was tough for David Jones and that Myer would likely have had a weaker performance.

Myer announced in July that it will take a $45.6 million hit after writing off the value of its 20 per cent stake in Topshop’s Australian franchisee and impairing the value of its struggling sass & bide brand.