Australia's Myer (ASX: MYR) is putting an end to continuous discounting and begins a customer service improvement campaign.

According to Myer chief executive Bernie Brookes, the previous year was “a one-off year with a phenomenal amount of discounting as retailers tried to drive through the prior year's stimulus.”The seemingly unending discounts, he claims, has conditioned consumers to become bargain-hunters.

The head of Australia's largest department store said, “We've conditioned our customers to buy on special so it's going to take us a quite a few years to ease back what you would call the reliance on specials. However, he expected changes by saying that he “wouldn't be surprised if the removal of discounting becomes the case for the next few years for retailers.”

Investors appeared to have favored the change because Myer shares went up $AU 5 cents to $AU 3.98. Myer also announced a 14.9 percent rise in pre-tax earnings which amount to $271 million.

Brookes forecast a 5 percent to 10 percent profit growth for 2011; mainly, due to investments in human resources. For years, Myer's customer service has been heavily criticized.

The department store will be adding one million extra staff hours to boost service, especially in the women's lingerie and shoe sections. The additional man hours will cost $20 million.