Myer Holdings Limited(MYR)reported first quarter total sales for the thirteen weeks to 27 October 2012 of$688.0 million,up 1.0 percent compared to last year.On a comparable store sales basis,sales were up 0.8 percent compared to last year.
The key categories of Menswear,Womenswear,Cosmetics and Childrenswear were the strongest performers during the quarter.The best performing states were Western Australia and Queensland.
Myer Chief Executive Officer,Bernie Brookes,said that while the trading environment during the first quarter continued to be difficult,the quarter benefited from a modest improvement in consumer sentiment.
There were a significant number of new brands that were introduced in our stores during the quarter including Trent Nathan,sass&bide intimates,Australian House and Garden(Homewares),Karen Walker Home and Material World by Madonna.We opened two new stores during the past six weeks with a very positive response from customers.These new stores in Fountain Gate(Victoria)and Townsville(Queensland)are both trading well,with significant support of Myer Exclusive Brands by customers and strong sign ups to the MYER one loyalty program.
We have started refurbishments at Indooroopilly(Queensland)and Highpoint(Victoria)and will start a major refurbishment of our Adelaide(South Australia)store in the new year.
During October,we launched two new loyalty initiatives:•MYER one smart phone application for iPhones which allows members to scan their digital loyalty card at the point-of-sale to earn shopping credits as well as redeem their rewards gift cards.•An Australian department store first-a'pay with points'initiative with the Commonwealth Bank.The 1.3 million Commonwealth Awards members will shortly be able to instantly redeem their Awards points for purchases at any Myer store.As a further reward,MYER one members will also earn shopping credits on purchases made using Commonwealth Awards points.
"While we welcomed the October interest rate cut there are a myriad of factors currently in the mix and influencing discretionary spend,so we continue to be cautious about the trading environment.
"In the context of this environment we have been pleased with continued progress in executing our five-point strategic plan to improve customer service,to enhance our merchandise offer,strengthen our loyalty program,build a leading omni-channel offer and optimise our store network.
"The continued strong performance of sass&bide in both the standalone and Myer stores has been particularly encouraging as customers embrace this leading fashion brand.
"We are looking forward to our busiest time of year during the Christmas and Stocktake trading period.We are delighted with how the stores look,in particular showcasing our many new brands and highlighting the bright colours in this season's merchandise.
