Australian retailer Myer announced Thursday plans to shutter underperforming stores and boost its online presence to reach an overall sales target of $4 billion by 2015.

Myer Chief Executive Bernie Brookes also disclosed plans to build a dedicated distribution centre in Victoria once online sales reach $30 million. The retailer aims to generate up to 10 per cent of its sales revenue from online commerce.

"Good retail management is about enhancing sales per square metre, optimizing a portfolio of stores and taking advantage of online opportunities. We've got this really good little measure that measures when we get to thirty million, but unfortunately it doesn't have a timeline down the bottom," he told Power Retail.

Despite the planned closure of underperforming stores, Brookes said Myer will continue to operate a total of 1.2 million square metres of space as it opens 12 new outlets within the next five years.

The weak retail environment was reflected in the report by shopping mall operator Westfield that its department store tenants logged a 12.5 per cent decline in sales for the latest quarter. Compared to a year ago, sales went down 7.5 per cent, while reckoned for the past nine months, the dip was by 10 per cent.

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