Myer shops its centennial year
MYER Holding Ltd’s flagship Melbourne store is set to drive $ 300 million in sales in fiscal 2012 after a thorough make-over in time for its centennial this year.
Myer will officially re-open its 35,000 square metre refurbished Bourke St store tomorrow and expects 26 million customers a year will drive sales back to the prebuild level of $ 300 million in fiscal 2012.
‘‘ It will have one of the highest sales per square metre of any department store in Australia and potentially the world,’’ chief executive Bernie Brookes said.
The department store chain’s sales in February had improved, he added.
Myer’s heavily discounted electrical goods – 13 per cent of its business – caused January sales to fall and drove a 3.5 per cent fall in first half 2011 sales to $ 1.73 billion to January 29.
That followed a s hock profit downgrade on February 7, when the company warned its full year profit in fiscal 2011 would be as much as 5 per cent below the previous year – in stark contrast to previous guidance of between 5 and 10 per cent profit growth.
Half a million customers a week, or 15 per cent of Myer’s total weekly visitors, are expected in the Bourke St store, and will be served by up to 500 staff, Mr Brookes said.
About 25 to 30 per cent of customers would make 2.1 purchases averaging $ 90 in total value, he added.
The store has lost 10,000 square metres of space during the refurbishment, which began a year after TPG bought the company.
Floor space was sacrificed for the central atrium and the wow factor it gives customers riding escalators.
FLYING THE FLAG: CEO Bernie Brookes