Department store group Myer who have cranked up their consumer electronic offerings of like to compete head on with the likes of Harvey Norman and JB Hi Fi have delivered a 40% increase in net profits.

The group has also forecast improved profitability by mid-2010. In their latest report My have net profits for fiscal 2008 of $93.579 million, up from $73.432 million in the prior year.

The profit increase comes despite a downturn in revenue from $3.002 billion last year to $2.94 billion this financial year. However the cost of doing business fell 2.8 per cent to $1.057 billion .

Myer claim that despite  tough market conditions they would continue, with good profits in 2009 due to cost cutting and better buying procedures and that they are "on track to deliver improved profitability with (earnings before interest and tax) of seven cents in the dollar by mid-2010".

According to AAP Myer Group executive chairman, Bill Wavish, said the company considered its financial performance as "solid"."Cash flow and profitability have both improved, providing us with a stronger platform for capital investment in the business," Mr Wavish said. "Debt has also reduced, with our next repayment four years away. "Despite current difficult retail trading conditions, we are on track to achieve the economic performance to underpin long term sustainable investment and growth.

"By mid 2010, the end of the Turnaround Phase and the beginning of the Growth Phase, we would expect to be earning over seven cents in the dollar." He added "Given the prevailing economic conditions and the impact on earnings of current refurbishments, our expectation that fiscal 2008 profits can be maintained in fiscal 2009 reflects our confidence in the underlying business, including our ability to continue to drive business improvements."