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Myer has posted a modest sales increase in its second-half FY25 trading update, though headwinds from its new apparel division and operational woes at a key distribution centre have cast a

shadow over the result.

The department store group reported total sales of $837.2 million for the 16 weeks to mid-May – up 1.9% on the previous corresponding period – with comparable sales rising 1.5%.

However the performance came amid what Myer described as “volatile trading conditions”.

The company’s online sales surged 9%, now accounting for over one-fifth of total sales.

Apparel Brands, acquired earlier this year and including labels such as Just Jeans and Dotti, dragged on group performance. Sales fell 3.9% to $211.2 million, with online performance down

3.5%.

Myer Executive Chair Olivia Wirth (pictured) said the result showed resilience amid “challenging trading conditions that were compounded by a subdued retail environment in the lead-up to the

May federal election.”

Wirth pointed to Myer’s 4.6 million-strong loyalty program and online momentum as key drivers: “Consumers remain cautious and focused on value in response to cost-of-living pressures and the

current macroeconomic headwinds and uncertainty. This has resulted in volatile trading conditions with widespread promotional activity across the retail sector.”

However, margin pressure from sector-wide discounting, rising operating costs, and persistent issues at the new National Distribution Centre (NDC) in Ravenhall tempered the gains.

Myer flagged ongoing automation and ramp-up challenges at the NDC but has introduced interim fixes, including bringing in logistics partner Toll to handle up to 40% of peak online volumes

and improving internal fulfilment to ease pressure on stores.

“FY25 represents a year of transition,” Wirth added, highlighting steps taken to bolster leadership, refinance the balance sheet, and integrate the newly acquired Apparel Brands.

Looking ahead, the company is preparing to unveil its refreshed Growth Strategy during an Investor Strategy Day on May 28, which will be streamed live.

As traditional retail battles structural shifts and economic uncertainty, Myer is betting that tech-enabled logistics and loyalty-driven engagement will keep it relevant and profitable in

the years ahead.

About Post AuthorJoe GallopSharemyer, retail