The Bendigo-born retail chain yesterday reported more than $33 million in net profit after tax, a 2.2 per cent boost.

It came despite a 3.5 per cent drop in total sales.

A Myer spokesperson said it was "business at usual" at the Bendigo store.

"We have a proud history of serving the Bendigo community and our commitment to the region and to our customers has not changed," they said.

Myer shaved $32.6 million off the cost of doing business in the past financial year.

Chief executive and managing director John King partly attributed the savings to reduced store occupancy.

Other factors included a new in-store staffing model, and a more focused marketing spend.

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Myer has either closed or announced the closure of 29,000 square metres of gross lettable area since July last year.

Further closures are forecast, with Myer in 'active discussions' about a further five to 10 per cent of store gross lettable area.

The strategy is intended to "transform the customer experience" while "delivering material cost savings".

Myer said discussions would continue with landlords about significant opportunities that remained across the network for space hand-backs and closures.

"In addition to cost savings expected with further space reductions, material opportunities remain to reduce costs in supply chain and fulfillment, as well as other non-customer facing activities," Mr King said.

Stores in at Belconnen, in the ACT, and Cairns are slated for refurbishment to provide an "enhanced shopping experience across a reduced store space".

Myer will also be leaving the fourth floor of the Melbourne Emporium in May.

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"Pleasingly customer service metrics have improved during the year," Mr King said.

Online sales rose by a quarter in the past financial year, to $262.3 million.

Myer's largest store is now its digital sales which, at $292.1 million, constitute almost 10 per cent of its total sales.

Mr King attributed the boost in online sales to an upgraded website and an expanded range of online products.

"We aim to match our store and online ranges by the end of this calendar year and we are confident that there are significant opportunities to continue to grow this channel," he said.

Myer plans to expand its range by adding more than 90 new brands by Christmas.

Mr King expected market conditions this financial year would continue to be challenging, but was positive about opportunities to improve productivity and reduce costs, and invest in online business and developing customer value.

The first Myer store opened in Bendigo in 1900, followed by a second store in 1908.

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