Myer boss Bernie Brookes says he is ordering about 10% less stock in anticipation of slower sales over winter.
He conceded his department stores are losing ground to discount rivals as shoppers tighten their belts and hunt for bargains.
Brookes declined to give sales guidance for the second half of the financial year because “we don’t know” how shoppers will respond to job cuts and recession fears.
“This environment is going to favour discount department stores and basic food operators, and we have to hold our part up as best we can over the next 12 months,” he said.
“There is no doubt they are stealing market share from us,” he said of the discount rivals Target, Big W and Kmart.
But Myer believes it has taken some upmarket David Jones customers.
Brookes said Myer was emphasising its low prices. The company was also asking its suppliers to fund some of the discounts.
James was the editor and publisher of SmartCompany and LeadingCompany for five years. He is now the Australian Financial Review‘s companies & markets editor, and a former BRW editor.
