Myer sales go backwards as cautious shoppers look for savings

Myer shares have plummeted after the retail giant announced that sales shrank in the second half of 2024, a period which covers the key Christmas and Black Friday trading period.

In an update posted to the ASX on Monday morning, Myer said that its total sales reached $1.59 billion in the six months to December 28, 0.8 per cent less than what was recorded in the identical 2023 period, while total group sales had kept “in line” with company expectations.

Greater consumer caution was among the reasons listed for the dip in sales, with executive chair Olivia Wirth, who joined Myer from Qantas in October 2023, noting that a “challenging trading environment” buoyed by inflationary challenges had dragged on the retail sector.

“In challenging trading conditions for the retail sector driven by a tough macroeconomic environment, Myer’s year-to-date sales performance has been stable,” Wirth said.

“Trading during last year’s key sales events including Black Friday was strong, but consumers remain cautious and focused on value given persistent cost-of-living pressures.”

Myer shares had fallen by 17.5 per cent to 20¢ by 11.14am AEDT, spurring a retreat across the local bourse.

The update was released in concert with half-year results from Premier Investments, chaired by billionaire retail veteran Solomon Lew, who is also Myer’s biggest shareholder.

Myer intends to add Premier’s clothing businesses, including Just Jeans, Jay Jays, Portmans and Dotti, to its retail empire, in a merger that would add 719 new stores to Myer, as Premier turns greater focus towards its Smiggle and Peter Alexander brands. Shareholders will vote on the intended merger on January 23.