Shares in department store Myer have fallen more than 4 per cent after the embattled retailer reported a full-year net loss of $486 million.

Myer’s sales fell 3.2 per cent in the year to July 28, slashing underlying profit by 52 per cent to $32.5 million before $541.2 million in costs and significant items.

Second-half sales were down 2.4 per cent on a same-store basis, which Myer said showed an improvement in performance.

Recently installed Myer chief executive John King, who replaced Richard Umbers after he was ousted in February following a series of profit downgrades, said the profit loss was “disappointing” and “clearly this needs to be better”.

“These results are obviously disappointing and shareholders deserve better,” he said.

Play Video The supermodel has announced on social media her 12-year reign as Myer ambassador will come to an end after this year's Spring Racing Carnival The West Australian Video The supermodel has announced on social media her 12-year reign as Myer ambassador will come to an end after this year's Spring Racing Carnival

Mr King, who admitted Myer has a track record for failing to execute business strategies, outlined a “customer first” plan to increase online sales, decrease the size of the stores and increase the focus on selling products exclusive to the department store.

“It’s about transforming that customer experience in store to make them want to come in, and to give them a reason to come in,” Mr King told investors in a call on Wednesday.

“We’re going to use online to drive the top line, and we’re going to use our private label and our store efficiency to drive profit.”

Online sales rose 34.1 per cent to $192.5 million but represented 7.7 per cent of total sales.

Mr King, the former boss of UK department store House of Fraser, said a new website will be launched this month.

Since starting in June Mr King has cut executive and senior management roles to reduce costs.

Myer’s headline loss was impacted by implementation costs and significant items of $541.2 million, of which $538.2 million were recorded as part of the first-half results, largely on writedowns of Myer goodwill and the brand name.

Myer’s shares slumped as much as eight per cent after the profit loss was released but recovered slightly to be down 4.6 per cent to 41.7¢ at 12.45pm Myer did not pay a final dividend.

AAP