Myer Profit May Rise

Australia's largest department store chain, Myer (ASX:MYR) has released a statement stating that annual profit for the company may rise as much as 10 percent from store refurbishments and new outlets. The company estimates that earnings before items will rise between 5 percent and 10 percent in the 12 months ending June 2011 from the fiscal 2010 profit of A$169 million ($158 million). A refit and refurbishment of Myer's largest store in Melbourne will be completed in that period, with one new store this financial year and another 13 planned by 2013-14.

Myer Chief Executive Officer is planning to increase spending on customer service as he seeks to increase profit margins that lag behind smaller rival David Jones. The company has invested more than $540 million on improvements including new point-of-sale and stock-tracking terminals.

There are 3.7 million Myer One loyalty program members with 5 million cards in circulation. 68 percent of sales can be attributed to the loyalty program. The Myer One database is being used to increase Myer's sales, by providing specific offers to specific sub-groups and demographics.