Myer CEO predicts Black Friday to beat Christmas

afr.com:

Myer’s outgoing chief executive John King predicted Black Friday trading to beat Christmas this year, after reporting improved turnover in the past seven weeks.

First-quarter same-store sales fell 0.9 per cent at the Solomon Lew-backed department store. Trading through the last seven weeks of the quarter ending October 28 was down just 0.2 per cent, narrowing from a 1.9 per cent drop over the first six weeks.

Myer CEO John King (L) with new chairman Ari Mervis at its AGM in Melbourne on Thursday. LUIS ENRIQUE ASCUI

Mr King told investors at Myer’s annual meeting in Melbourne on Thursday he is hoping the department store’s iconic Bourke Street holiday windows revealed this weekend will drive further traffic in-store.

“We remain very cautious of these macro headwinds, especially with [the] interest rate rise this week, and therefore we will continue to retain a strong focus on profitable sales, cash and cost,” he said.

“We are well-placed for the Christmas peak. More importantly the Black Friday peak which, we believe, will be probably even bigger than Christmas. We’ve developed strong plans across the in-store and online to capitalise on both Christmas and Black Friday periods.

“Our exciting new Christmas campaign is now launched and set up superbly. Every store is ready. There is plenty of stock ready to go.”

Retailers are desperate for new Reserve Bank governor Michele Bullock to quit tightening after the RBA lifted the cash rate to 4.35 per cent on Tuesday.

A new survey by the Australian Retailers Association and Roy Morgan found 30 per cent of shoppers will cut their Christmas gifting budgets this year, and 61 per cent will look to spend the same. Just 9 per cent intend to spend more.

Australians will spend $67.1