Myer Sales Plummet Amid Cost-of-Living Pressures

Australian retailer Myer has experienced its most significant sales setback in almost ten years, with consumer sales declining 5.5 percent in June and 4 percent in July. The company announced Tuesday that the downturn, which occurred despite extensive discounts and promotions, has led it to assess potential impairments that could impact its 2026 financial results.

Chief Executive Olivia Wirth attributed the slump to a confluence of economic pressures impacting consumer spending. "You have got the [interest] rate rises, cost-of-living pressures which are real. Fuel has obviously added to that," Wirth told The Australian. She also cited a weakening housing market, low auction clearance rates, and the perception of the Federal Budget as contributing factors. "So the combination of all those factors has meant the customer is feeling it, and that obviously impacts on discretionary spend."

These economic headwinds have compounded a challenging period for Myer. The company's beauty division has also struggled since the departure of Mecca earlier this year, which ended a 17-year partnership and led to Mecca focusing on standalone locations. This withdrawal contributed to lower results in the beauty department, though Myer's total preliminary sales for the year to July 2025 rose 11.3 percent to $4.089 billion.

Pro forma sales saw a modest 0.3 percent increase, driven by growth in homewares, womenswear, and children's categories, as well as the Just Jeans brand, digital marketplace, and concession sales. However, these gains were insufficient to offset the broader sales decline.

Wirth acknowledged the volatile trading conditions, noting a stronger May followed by a significant reversal in June and July. "All these factors obviously have compounded and you can see that volatility transpired into significant impact in June and July," she said. Despite the current challenges, Wirth expressed optimism regarding the company's long-term strategy, stating, "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."

Myer is currently undergoing a process with auditors to determine the extent of any potential write-downs, with outcomes expected to be detailed in the company's full-year results in September. The retail giant has reportedly remained more stable than its competitor David Jones.