Myer worries disability levy will hit sales.    

Date
    May 1, 2013

   

Brian Robins



Retailer Myer has warned the proposed increase to the Medicare levy will hurt sales at its stores, since it will affect its direct customer base.    

The federal government confirmed today it planned to increase the Medicare levy by half a percentage point, which will cost the average household at least $350 a year. The levy is to part-fund the proposed national disability insurance scheme (NDIS).

The estimated $350 for the Medicare levy increase ‘‘is something they would have spent with us’’, Myer chief executive Bernie Brooks told a Macquarie Investment seminar earlier today.         

The proposed levy ‘‘is not good for our customers and may have an impact’’, Mr Brooks said.


Overall, retail sales had not been as volatile this year as they were last year, he said, when equity markets would fall by 120 points in a day.

But with school holidays brought forward this year and an early Easter, this had made it difficult to forecast sales.

Myer is continuing to enjoy good sales growth from its expanding suite of in-house, exclusive brands, he said which was helping to offset ongoing cost pressures.

Even though new store openings were planned there would be no net increase in retail space over the next five years, he said.

Any additional space from new store openings would be offset by reduced floor areas at existing outlets, which was helping to restrain rent costs and to improve productivity, Mr Brooks said.

Read more: http://www.theage.com.au/business/myer-worries-disability-levy-will-hit-sales-20130501-2isg6.html#ixzz2S12r9bwa

Unbelievable ............

Crook has said several times, and still does that if some of these over priced stores cut their prices, then they might get some more customers.      

Myer, one of the most expensive stores there is, and they wonder why people shop on line.  Go figure.    

JC Denton wrote on May 1^st, 2013 at 5:48pm:


I bought a dishwasher and it was here the next day, delivery included in the price and they even took away my old ones, Gerry won't do that ... I also bought an oven and that took 2 days, again same deal ... and the savings were huge.

Suprised you say not much savings and you're buying camera equipment ... most camera equipment I've seen is at least 1/3 less than Australian prices)