Myer shops its cen­ten­nial year

Townsville Bulletin - - Investor -

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

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