Myer sees December sales slump

MYER is hoping shoppers have put off visiting a store knowing they have a full weekend immediately before Christmas Day as a sales slump mars its most important trading period.

Shares in the department store chain have tumbled to an all-time low after it delivered investors an unusual preChristmas profit warning.

The troubling update drew immediate fire from Myer’s biggest shareholder, retail magnate Solomon Lew, who is campaigning to overhaul the retailer’s board and strategy.

“Clearly there is worse to come,” Mr Lew said.

Myer yesterday said sales for the first two weeks of December were 5 per cent lower than in the same period a year earlier.

The slump adds to the 2.8 per cent fall Myer suffered during the 13 weeks to October 28, meaning its cash registers are failing to ring during a period that can make or break a retailer’s full-year profit result.

Myer said the poor start to December meant its underlying profit for the first half of the financial year was expected to be “materially below” the $62.8 million it posted in the same period a year ago.

Chief executive Richard Umbers said a general reduction in foot traffic, widespread discounting and low consumer confidence were behind the sales slide.

Christmas falls on a Monday this year giving shoppers a full weekend for last-minute shopping. This unusual timing made it hard to compare this year with other years as shoppers might be leaving their runs to the final week, Mr Umbers said.