Dire consumer sentiment curbs sales at struggling Myer
Myer boss Olivia Wirth says the department chain saw a ‘material downturn in consumer sentiment’ at the end of the financial year that has carried over into July.
Myer boss Olivia Wirth says the department chain saw a “material downturn in consumer sentiment” at the end of the financial year that has carried over into July as shoppers tighten their belts amid rising interest rates and higher fuel prices.
In its full-year trading update released on Monday, Ms Wirth said the second half of the year had been characterised by a “volatile and significantly more challenging macroeconomic and retail environment” than the first half — or the previous financial year — after war broke out in the Middle East in February and the Reserve Bank wiped out all rate relief delivered in 2025.
“While we remain cautious on the near-term consumer outlook, we are confident that the strategic actions we are taking today are strengthening the group’s competitive position, resilience and supporting the creation of long-term shareholder value,” she said.
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By continuing you agree to our Terms and Privacy Policy.Myer still shows signs of struggling to lure in more shoppers as sales rose just 0.7 per cent for the full year.
Total group sales, aided by its now fully integrated Apparel Brands — including mall staples Just Jeans, Portmans, Dotti, Jay Jays and Jacqui E — rose 11.3 per cent to $4.1 billion.
Pro forma sales rose only 0.3 per cent.
Myer said trading between January and the end of June had been a rollercoaster.
“These pressures have included the inflationary effects of higher fuel prices arising from the Middle East conflict, three interest rate increases in CY26, slower household income growth, a weaker housing market and financial uncertainties for many households,” it said.
“Despite mixed trading month-to-month for Myer Group, including a strong recovery in May, these impacts have compounded in June and July, significantly constraining household budgets and consumer spending.
“This has been further compounded by a warmer than average start to winter in most of Australia’s major cities.”
Myer said it had been forced into heavier promotional activities but “it has not been sufficient to offset weak underlying consumer spending”.
More to come
Originally published as Dire consumer sentiment curbs sales at struggling Myer
