Department store chain Myer delivered its highest full-year sales since 2005 this year but remains cautious as consumer spending declines due to unfavourable economic conditions.

Myer’s total sales grew 12.2 per cent to $3.36 billion in FY23. This reflects the scale of its online business – which had a revenue of $691 million, representing 20.5 per cent of total sales – and a 10 per cent increase in productivity gains at physical stores.

The company noted a 0.4 per cent flat growth in the second-half sales attributed to a deterioration of trading conditions due to what it described as macroeconomic factors affecting consumer demand. 

Sales at CBD stores, its strongest-performing, grew 30 per cent. After excluding lockdown periods in the previous year, sales at CBD stores rose 14.4 per cent.

“Our multi-channel offer is a key strength of these results as we capitalised on customers returning to stores after closures in the prior year, underpinned by our leading customer loyalty proposition in Myer One,” said John King, CEO.

“Our online offer is a scale business that returned to growth in the second half and has continued to increase market share throughout FY23.”

Net profit rose 18.2 per cent to $71.1 million for the 12 months to July 29, the highest since 2015. Statutory net profit rose 23.3 per cent to $60.4 million, including the closure costs of the Altona and Richlands distribution centres and the Brisbane store.

Operating gross profit margin declined to 36.4 per cent, while cost of doing business margin slid to 24.5 per cent.

Meanwhile, the company saw a 1.9 per cent decline in sales in the first six weeks of the new financial year.

Myer also said that Nigel Chadwick will be retiring as its CFO and will be succeeded by deputy CFO Matt Jackman, effective February 1.