Via AFR:
Myer chief executive Richard Umbers has slashed sales growth and return targets under his New Myer strategy after admitting that the retail environment was changing faster than expected.
Under new targets unveiled at a strategy update in Melbourne on Wednesday, Myer is now aiming to grow sales per square metre or productivity by 10 per cent by 2020 rather than 20 per cent.
Underlying earnings per share are forecast to grow by 5 per cent compound annual growth rate between 2017 and 2020 and return on funds employed are expected to exceed 10 per cent, down from the original target of 15 per cent.
Myer also released first quarter sales figures, saying sales for the 13 weeks to October 28 fell 2.8 per cent to $699.0 million, and same-store sales fell 2.1 per cent. Sales per square metre rose 3.6 per cent after store closures.
Mr Umbers plans to close or shrink as many as 19 stores – four in the next two years and eight by 2025 – on top of the four store closures announced in 2017.
Aussie retail is the canary in the coal mine pulling two big recessionary months in a row:
