The size of Launceston’s Myer store will be reduced after the company’s results showed its profits decline in the past financial year.
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Earlier this month Myer said comparable sales fell 0.2 per cent for the 12 months to the end of July, while total sales fell 1.4 per cent.
Chief executive Richard Umbers used the release of the results to the stock market to reveal three stores on the mainland would close.
Mr Umbers said since the launch of New Myer in September 2015, the company had closed, or announced the closure, of 74,670 metres-square of store space.
According to the annual report, Myer in Launceston had its Selling Lettable Area space reduced in August of this year.
Selling Lettable Area is the space in the store products are sold from, and does not include a stock room or office.
“We have an ongoing commitment to improve productivity in our stores,” a spokesman for Myer said.
"We have reduced the space in our Launceston store but we have retained our range and product assortment.”
The spokesman said the company “hope this creates a sharper and more focused offer for our customers”.
The Examiner understands Myer’s lease at the building will expire in 2027.
Located in an old brick building on the corner of St John Street and the Brisbane Street Mall, Launceston Myer spans across five levels.
Launceston Chamber of Commerce chief executive officer Neil Grose acknowledged it was concerning to hear Myer was reducing space.
“Myer is one of those core businesses as a department store which brings people into the central business district,” he said.
“It is critical for the health of the CBD and it is worrying they are discussing reducing floor space.”
It is critical for the health of the CBD and it is worrying they are discussing reducing floor space.
- Chamber chief Neil Grose
Mr Grose said it was not likely the store would close due to its positive financial position.
“As I understand it, Myer Launceston is a very profitable store in the group,” he said.
“We look forward to seeing what Myer is up to – and if it does involve a re-fitout or refurbishment – then we’d welcome that opportunity to bring more people into the CBD.”
For the year ahead Myer anticipates continuing changes to both consumer behaviour and the broader competitive environment.
According to the report, sales in this financial year are below expectations.
“The business is well placed for the upcoming and more significant trading periods of Spring Racing and Christmas,” it read.
Myer noted an underlying net profit after tax of $66 million factors a subdued start.