Myer Pty becomes the trail blazer in putting an end to the seemingly continues mark downs and discounting in department stores across the country.

According to Myer department store chief Bernie Brookes, the expenditure for discounting ranges between 10 and 12 percent of its $3 billion annual sale revenue. Brookes said, “If we can take half a percent off that, it's a significant contribution” because it would translate to an extra $15 million for pre-tax earnings.

The department store group in which the Australian is king posted a net profit of $169 million after tax early in September. Its sales, however, is $80 million short of prospectus forecasts.

Brookes assured of sale periods that would bring down prices to about 25 percent instead of the regular cut of 30 percent.

Meanwhile, outdoor gear retailer Kathmandu Holdings Limited (ASX: KMD) and clothing trader Oroton Group Limited (ASX: ORL) are pessimistic of the the retail environment. The sentiments developed as Commsec warned that “Capital cities such as Sydney, Melbourne and Adelaide are experiencing their coldest starts to spring for over a decade” because “'Consumers are unlikely to update their spring-summer wardrobes until the weather starts to warm up.”

Kathmandu's net profits, excluding float costs, had lifted from $NZ 10.3 million to $NZ 25.2 million. The prospectus forecasts, though, was $NZ 44.8 million ($A 34.35 million) pre-tax profit, after stripping out float and other costs. The reality was $NZ 41.2 million.