What: Australia’s Myer reports best profits in 18 years.

Why it is important: Just like for many other department stores, this performance could be either a peak or the beginning of a new story according to strategic decisions made in an ever-changing context.

Myer reported a profit of $71.1 million, marking its best annual sales in 18 years at $3.36 billion. However, the second half of 2023 saw sales growth slow to 0.4% and a 1.9% drop in comparable store sales over the last six weeks. CEO John King attributes this to broader macroeconomic factors. Despite challenges over the years, Myer believes it's set for success, with a debt-free status and over $100 million cash on hand. The company has focused on its "Customer First" strategy, emphasizing online growth. Online sales reached $690.5 million in 2023, with a target of $1 billion annually in the next five years. Additionally, Myer's loyalty program boasts 4.2 million active members. Significant leadership changes are anticipated, with King exiting in 2024 and CFO Nigel Chadwick retiring next year. The largest shareholder, Solomon Lew, owns nearly 30% of Myer. The company sees a future in expanding online sales, improving distribution, and leveraging its loyalty program with new partnerships.

Myer reports record sales